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Orszag touts healthcare vertical integration, experimention

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:

  1. “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.
  2. “To create and capture that improved value, it’s important to influence what doctors recommend.
  3. “To influence doctors’ recommendations, change the financial incentives and information that providers face. The best approach to doing that is vertical integration.
  4. “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.


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