Excerpted from Modern Healthcare:
Global budgets face other headwinds. Policymakers often tie global hospital budgets to other healthcare goals, like increasing access to primary care. According to Medicare Payment Advisory Commission member Dr. Amol Navathe, the marriage of global budgets and primary care can create tension between hospitals and other providers, which could help explain why they haven’t led to the cost savings experts predicted. “Hospitals are not usually in the business of primary care,” he said.
In addition, hospital executives might be resistant to aggressively cutting costs since it could lower their budgets and reduce their staff over time, which might shrink their clout in the health care industry, Navathe said.
Read more at Modern Healthcare.