HMO’s new cost control technique: patient involvement

Charles Baker, CEO of Harvard Pilgrim Healthcare, has apparently given up on traditional managed care cost control tools. Baker is calling for radical, “disruptive” measures to get patients involved in slowing down medical inflation.

He’d like to see a greater use of high-deductible plans, and more disclosure of cost information to generate competition among providers.

When I saw Baker speak a few months back, I had the distinct impression he was looking for ways to steer patients from the high cost, high reputation Harvard hospitals in Boston to more cost effective community hospitals. That will be tough.

Maybe he should speak with the folks at Sam’s Club about how to unleash the genius of the consumer.

March 13, 2005

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