Medical device manufacturers were among major industry groups that delivered healthcare cost-cutting proposals to President Barack Obama on Monday.
Hospitals, doctors, pharmaceutical companies, health insurers, medical device makers and unions have committed to help reduce the annual growth rate of healthcare spending by 1.5 percentage points over the next 10 years.
The groups involved include the Advanced Medical Technology Association, America’s Health Insurance Plans, the American Hospital Association, the American Medical Association, the Pharmaceutical Research and Manufacturers of America and the Service Employees International Union.
These groups estimate that, over a decade, improving chronic care management would save between $350 billion and $850 billion; administrative streamlining would save $500 billion to $700 billion; and improving the “utilization” of care would save $150 billion to $180 billion. Their proposals include pledges to try and reduce medical errors, switch to common insurance forms, improve measurements of physician performance, reduce the number of patients readmitted to hospitals, improve the efficiency of drug development and expand in-home care for patients with long-term illnesses.