Kaiser Permanente CEO: Move Care Away From Hospitals to Save Costs

Oakland, Calif.-based Kaiser Permanente Chairman and CEO George Halvorson said the way to lower healthcare costs is to move care delivery further away from hospitals, according to a New York Times report.

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In the Times’ profile of Kaiser, Mr. Halvorson said the 37-hospital organization has yet to achieve the ultimate goal of delivering care at a low enough cost. The article did not provide further explanation as to what defines “low enough.” The integrated health system is experimenting with new care delivery models, such as home care and telemedicine, in which a patient’s visit to a provider is not necessary.

Mr. Halvorson, who plans to retire at the end of this year, said another way to lower healthcare costs is for patients to take more responsibility for their healthcare. He specifically said work to reduce obesity is “incredibly difficult,” according to the report.  

Although Kaiser is one of a handful of integrated systems frequently touted as a prototype for American healthcare, some industry experts remain wary of its prices. “They have not translated some of their strengths into better prices,” David Lansky, president and CEO of Pacific Business Group on Health, which represents many employers who purchase coverage from Kaiser for their workers, said in the report.

More Articles on Kaiser Permanente:

Kaiser Permanente Workers’ Union Revote Slated for April
Kaiser Hospitals’ Net Income Soars 30% in 2012 to $2.6B
Kaiser Permanente, Memorial Hermann Win Eisenberg Patient Safety Award

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