Peter Orszag, vice chairman and global co-head of healthcare at Lazard, discusses the need for vertical integration and experimentation in a piece in NEJM Catalyst, which summarizes four of his points thus:
- “There is significant opportunity to improve value in health care; recent research indicates both the availability of that value improvement and where it may reside.
- “To create and capture that improved value, it’s important to influence what doctors recommend.
- “To influence doctors’ recommendations, change the financial incentives and information that providers face. The best approach to doing that is vertical integration.
- “It is a mistake to elevate the status quo in asking whether the alternative is better than today. Instead, ask, “Is the alternative statistically worse than today?” If it’s a draw, try something else — experiment aggressively.’’
To read and hear his remarks, please hit this link.