Mary Grealy's Presentation: Consensus Building in an Era of Extraordinary Challenge http://bit.ly/MHwomenleaders12

1. Lead Sponsor
Luncheon Sponsor Reception Sponsor Refreshment Sponsor

2. KEYNOTE ADDRESS
Mary Grealy
President
Healthcare Leadership
Council

3. Women Leaders in Healthcare Conference
August 7, 2012
Consensus Building in an Era of
Extraordinary Challenge

5. Healthcare Leadership Council
• Coalition of leading executives from
insurers, hospitals, pharmaceutical
manufacturers, medical device
manufacturers, other sectors
• Shared vision of innovative, consumer-centered
healthcare system defined by
quality, affordability, accessibility

6. Once There Was Just One…
• Women leaders active in
HLC decision making:
– Vicky Gregg, BlueCross
BlueShield of Tennessee
– Patricia Hemingway Hall,
Health Care Service Corp
– Susan DeVore,
Premier healthcare alliance
– Adele Gulfo, Pfizer
– Patricia Simmons, Mayo Clinic
– Christine Jacobs, Theragenics
– Heyward Donigan, ValueOptions
– Colleen Conway-Welch,
Vanderbilt University School of Nursing
– Marion McCourt, AstraZeneca

7. “Scholars find that women, compared with
men, tend to excel in consensus-building
and certain other skills useful in
leadership.”
--Nicholas Kristof, New York Times
“When Women Rule”

8. Where We Need Consensus
• The direction of health reform
– Kaiser July tracking survey: 38%
favorable, 44% unfavorable
• Entitlement reform
• Deficit reduction and healthcare
• The role of medical innovation

9. Conflict in the Political World
• Elections may not lend clarity
• Presidential race will likely
leave half of U.S. unhappy
– CBS/NY Times poll:
Romney 47-46%
– Gallup tracking poll:
consistent 1-2% margin
• Obama maintains slight lead
in key swing states

10. A Closely Divided Congress
• U.S. Senate based on current
polling: 47 D, 45 R, 8 tossups
(6 D seats, 2 R seats)
– Neither party will have 60 votes
needed to pass major legislation
• U.S. House based on current
polling: 214 R, 172 D, 49
tossups
– Analysts: Majority unlikely to
change, but Democrats could
tighten margin

11. Defining Success in Health Reform
• Continuous quality improvement
• Vibrant innovation
• Eliminating health disparities
• Improved cost-effectiveness
• Sustainability

12. Where Do We Focus Our Ideas,
Our Voices?
• Implementing health reform
– Preserving the best, fixing the
problematic
• Deficit reduction that doesn‟t
undermine American healthcare
– Reforms that add value, not cuts
that hurt quality and access
• Strengthening entitlement
programs for the long run
– Understanding that the status
quo is not sustainable

13. The Best of Health Reform
• Addressing the uninsured
crisis a historic achievement
• Takes steps in fixing the
volume-not-value approach
to healthcare
– Centers for Medicare and
Medicaid Innovation
• Improved prevention and
wellness features
• Closing the Medicare Part D
“doughnut hole”

14. Health Reform Concerns to Address
• Independent Payment Advisory Board (IPAB)
– Ax to cut spending with no focus
on value or quality
– No accountability to public
• Medicaid expansion
– Low reimbursement rates present
access concerns
– Will all states participate?
• Taxes, fees and payment cuts
– Almost all health sectors take a hit
– Impact on quality, access, innovation?

15. Deficit Reduction and Health Care
• Healthcare will be a focus of budget cuts
• Simpson-Bowles ideas raise concerns
– Global healthcare spending limits
– Beefed-up IPAB
– Resurrection of the „public option‟
• Reconcile two goals – spending reductions and
improved health outcomes

16. Private Sector Providing Answers
• Companies in every health
sector demonstrating how to
improve care, curb costs
• HLC Value, Wellness
Compendiums
– Providing metric-supported
examples of cost-effective
care, disease prevention

17. Medicare Reform
• National debt rapidly • Ensure economic growth
increasing, burden for and jobs today;
future generations opportunities for
• Aging population requires children, grandchildren
more healthcare tomorrow
• Current entitlement • Maintain access to
structure cannot stand healthcare for current,
without tax future Medicare
increases, provider & beneficiaries
benefit cuts

18. Medicare’s Future
• Projected insolvency date: 2024
• Over 10,000 baby boomers
turning 65 each day
– Beneficiary population: 45.2 mil
today, 70 mil in 2030
• Medicare 3.6% of GDP today;
6.4% in 2030
• Average baby boomer couple
will pay $114,000 in lifetime
Medicare payroll taxes
– Receive $350,000 in medical care

19. Some Options on the Table
• Denial (“Keep Medicare
as we know it”)
• Provider cuts
– $575 billion in Medicare
payment reductions in PPACA
• Let IPAB do it
• De facto price controls

20. Is There a Better Answer?
• HLC Approach:
– Inject Medicare with consumer
choice and competition
– Private health plans compete
on cost, value
• Beneficiaries would have option of
staying in conventional FFS Medicare
– Cost savings generated by
competition, not price controls
or government-mandated
payment cuts

21. Consensus Building: The Tasks Ahead
• Present compelling vision
of innovation-based,
accessible healthcare
• Make clear that status
quo cannot stand
• Communicate the answers
found in new private sector
approaches
• Build agreement that cost
containment, quality
improvement are not
mutually exclusive

22. Women Leaders in Healthcare Conference
August 7, 2012