Mark Udall: Health Reform Essential to Reduce Staggering Waste in Health Care System

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In Speech on Senate Floor, Udall Points to Colorado Example of Coordinated, Streamlined Care, which Saves Money and Emphasizes Ways to Keep Patients Healthy

November 5, 2009 -- Washington, D.C. - Today, U.S. Senator Mark Udall, delivered a speech on the Senate floor emphasizing ways health insurance reform would reduce wasteful spending and increase efficiency - putting the focus of the health care system back on patients where it belongs. The U.S. spends over $2 trillion per year on health care - nearly one fifth of the economy - yet between 30 and 50 percent of these dollars are not contributing to better patient health. That's unsustainable and unhealthy, Senator Udall said.

In his speech, Senator Udall discussed one example of efficiency that is working in Colorado - an example that could be expanded under health insurance reform. A patchwork of physician groups like Physician Health Partners (PHP) in Colorado has seen great success in improving care for kids suffering from asthma, and in other areas. For instance, PHP has developed treatment guidelines and promoted collaboration among doctors, the Children's Hospital in Denver, and the Colorado Allergy and Asthma Centers. As a result, they've reduced emergency room visits and improved families' ability to manage asthma on their own.

"The successes of groups like Physician Health Partners demonstrate that we already have the will and know-how to change our system for the better," Senator Udall said in his speech. "But under today's system, there is little to no incentive for programs like PHP to even exist. Under the status quo, a hospital stands to lose money if it decreases its admission rates. Primary care doctors would be at a financial disadvantage if they spent time to develop and implement effective treatment plans for their asthmatic patients."

Senator Udall was joined on the floor by Senator Michael Bennet and seven other Democratic freshman Senators, who also spoke. Delivering a bloc of speeches on the Senate floor is an unusual move, but the freshman Senators want to show that they are united in their call to action and make their position clear that the status quo is not sustainable.

The following are Senator Udall's remarks as prepared for delivery:

Mr. President, I join my freshman colleagues this morning to emphasize again the urgent need to reform health care in our country.

The unsustainable growth in health care costs and lack of stable, affordable coverage for millions of Americans continues to jeopardize not only our nation's fiscal wellbeing but also the physical wellbeing of our families and neighbors.

One of the key ways we can help put our health care system - and our economy - on the right track is by encouraging value in the delivery of health care. I've cited these numbers before, but I want to emphasize them again: as a nation, we spend over $2 trillion per year on health care. That's nearly one fifth of our economy. Yet between 30 and 50 percent of these dollars are not contributing to better patient health.

That's not a good deal for the American people, Mr. President.

Health reform is designed to address this staggering amount of waste in a number of ways. One way is to encourage providers to focus on the quality of care they provide and not just on the volume. We can start with Medicare.

I think the American people would agree, Mr. President, that taxpayer dollars are better spent by rewarding doctors for keeping patients healthy, and not for prescribing more tests or performing more procedures.

Health reform legislation can move us in this direction through the development of what are known as "Accountable Care Organizations," or ACOs.

These organizations would encourage groups of health care professionals to team up and provide more coordinated, streamlined care to Medicare patients. The idea is to have these ACOs take responsibility for improving patient care while lowering costs, and then sharing the savings that would accrue.

Research indicates that this idea of shared savings would help eliminate waste and spur changes in our health care delivery system to emphasize patient outcomes and value.

The idea for ACOs no doubt came from the great work being done by a patchwork of physician groups. Groups like Physician Health Partners - or PHP - in my home state of Colorado, and others across the country are already focused on care coordination and quality.

For example, PHP has seen great success in improving care for kids suffering from asthma, the number one cause of child hospitalization and school absence. PHP developed treatment guidelines and promoted collaboration among doctors, the Children's Hospital in Denver, and the Colorado Allergy and Asthma Centers. As a result, they've reduced emergency room visits and improved families' ability to manage asthma on their own.

PHP also manages the Practice Health Project. This comprehensive effort brings doctors together to share best practices and encourage the adoption of commonsense guidelines to improve quality and efficiency. The goal of this team effort is to raise the standard and value of care and allow these physician groups to act as a model for Denver's physician community as a whole.

I'd also like to tout PHP's Transitions of Care Program. In collaboration with Denver's St. Anthony Hospital and other local care providers, the program dispatches nurse "coaches" to help Medicare patients make the transition from the hospital to their homes.

The period immediately following a hospital stay is a very confusing time - particularly for our seniors. Having someone to help with this transition is critical. PHP has had tremendous early success with this program, showing the potential to reduce costly hospital readmissions by 40 to 50 percent. At the same time this program keeps patients healthy and saves money.

The successes of groups like Physician Health Partners demonstrate that we already have the will and know-how to change our system for the better. But Mr. President, under today's system, there is little to no incentive for programs like PHP to even exist. Under the status quo, a hospital stands to lose money if it decreases its admission rates. Primary care doctors would be at a financial disadvantage if they spent time to develop and implement effective treatment plans for their asthmatic patients.

This is why health reform includes commonsense proposals - such as encouraging groups like Physician Health Partners to form Accountable Care Organizations, and paying them to coordinate care for Medicare patients. Promoting ACOs and other creative, pro-consumer ideas will increase quality for patients and value for the taxpayer. Only by reshaping the way we do business in our health care system can we truly change health care delivery in this country.

I look forward to working with my colleagues here today and other Senators in the coming weeks to promote the many ways we can accomplish that goal.

Source: Senator Mark Udall