Valuing Health Care: Improving Productivity and Quality
64 Pages Posted: 20 Apr 2012
Kenneth J. Arrow
Stanford University - Department of Economics
Kamran Bilir
University of Wisconsin - Madison - Department of Economics
Shannon Brownlee
New America Foundation
Robert Califf
Duke University - School of Medicine
Bob Cook-Deegan
Arizona State University (ASU) - School for the Future of Innovation in Society
Frank L. Douglas
Ewing Marion Kauffman Foundation
Paula Ehrlich
Drug Discovery Center of Innovation
Stephen Friend
Sage Bionetworks
David Gratzer
Manhattan Institute for Policy Research
Scott E. Harrington
University of Pennsylvania - Wharton School
David A. Hyman
Georgetown University Law Center
Brink Lindsey
Cato Institute
Robert E. Litan
Council on Foreign Relations (CFR) - Council on Foreign Relations- Washington D.C.
Susan Love
Dr. Susan Love Research Foundation
Ernest Ludy
EGL Advisors/The Ludy Family Foundation
Lesa Mitchell
Techstars
Benjamin Moulton
Harvard University - Department of Health Policy & Management; Informed Medical Decisions Foundation
Dominique Pahud
Novartis Pharmaceutical Corporation - Novartis Oncology
George Poste
Arizona State University
Franklyn Prendergast
Mayo Clinic Center for Individualized Medicine
George L. Priest
Yale University - Law School
Arti K. Rai
Duke University School of Law; Duke Innovation & Entrepreneurship Initiative
Jonathan Rauch
Brookings Institution
Barak D. Richman
Duke University, School of Law
Carl J Schramm
Syracuse University
Peter H. Schuck
Yale University - Law School
Gregory Simon
Pfizer, Inc.
Joseph Smith
West Wireless Health Institute
Dane Stangler
Ewing Marion Kauffman Foundation
John E. Tyler
Ewing Marion Kauffman Foundation; Columbia University
John Wilbanks
Sage Bionetworks
Date Written: April 2012
Abstract
This report addresses a deceptively simple question: How can the productivity of American health care be substantially improved? Productivity, in lay terms, is the ratio of output to inputs. A more colloquial rendition of the question might be: how can we get a lot more bang for our health care buck?
By design, we have brought together a varied assortment of ideas and suggestions, illustrating the messy, grab-bag nature that effective changes often need to take. Yet our proposals do fall (albeit with some overlap) into four broad categories, which structure the recommendations section of this report.
Harnessing information: how systematically gathering and sharing data can unlock knowledge that produces systematically better choices. The key here is to incentivize a new corps of data entrepreneurs to collect and analyze existing medical data to discover and then disseminate the use of new therapies.
Improving research: encouraging more collaboration across institutions and funding more translational research (aimed at “translating” basic scientific discoveries into medicines and therapies).
Legal and regulatory reform: modernizing medical malpractice systems, removing counter-productive restrictions on health insurance premiums, and streamlining new drug approvals.
Empowering patients: there are large benefits of giving more power to the people who matter most — patients — to make informed decisions about their own care.
The ideas here are not new, though many of them are familiar only to the cognoscenti. To the contrary, we have sought ideas that have showed promise in the field, and then attempted to set them in a context that exploits the adjacent possible.
If this report can focus more minds in the health policy community and general public on finding and implementing those changes, in everything from clinical practices to regulatory structures, it will have succeeded.
From the Kauffman Task Force on Cost-Effective Health Care Innovation.
Keywords: health care, health, policy, productivity, regulation
Suggested Citation: Suggested Citation
Kenneth J. Arrow
Stanford University - Department of Economics ( email )
Landau Economics Building
579 Serra Mall
Stanford, CA 94305-6072
United States
Kamran Bilir
University of Wisconsin - Madison - Department of Economics ( email )
Madison, WI 53706
United States
Shannon Brownlee
New America Foundation ( email )
Washington, DC USA 20009
United States
HOME PAGE: http://newamerica.net/user/218
Robert Califf
Duke University - School of Medicine ( email )
United States
Robert M Cook-Deegan
Arizona State University (ASU) - School for the Future of Innovation in Society ( email )
PO Box 875603
Tempe, AZ 85287-560
United States
Frank L. Douglas
Ewing Marion Kauffman Foundation ( email )
4801 Rockhill Road
Kansas City, MO 64110-2046
United States
8169321204 (Phone)
Paula Ehrlich
Drug Discovery Center of Innovation ( email )
PO Box 13032
Research Triangle Park, NC 27709
United States
HOME PAGE: http://www.ddcoi.org
Stephen Friend
Sage Bionetworks ( email )
1100 Fairview Ave. N.
Mailstop M1-C108
Seattle, WA 98109
United States
(206) 667-2102 (Phone)
(206) 667-2062 (Fax)
HOME PAGE: http://sagebase.org
David Gratzer
Manhattan Institute for Policy Research ( email )
52 Vanderbilt Ave.
New York, NY 10017
United States
Scott E. Harrington

University of Pennsylvania - Wharton School ( email )
3641 Locust Walk
Colonial Penn Center
Philadelphia, PA 19104-6358
United States
215-898-9403 (Phone)
215-573-2157 (Fax)
HOME PAGE: http://scottharringtonphd.com/
David A. Hyman
Georgetown University Law Center ( email )
600 New Jersey Avenue, NW
Washington, DC 20001
United States
Brink Lindsey
Cato Institute ( email )
1000 Massachusetts Avenue, N.W.
Washington, DC 20001-5403
United States
Robert E. Litan (Contact Author)
Council on Foreign Relations (CFR) - Council on Foreign Relations- Washington D.C. ( email )
1777 F Street, NW
Washington, DC 20006
United States
Susan Love
Dr. Susan Love Research Foundation ( email )
16133 Ventura Blvd 1000
Encino, CA 91436
United States
310-828-0060 (Phone)
310-828-5403 (Fax)
HOME PAGE: http://www.dslrf.org/
Ernest Ludy
EGL Advisors/The Ludy Family Foundation ( email )
Sausalito, CA
Lesa Mitchell
Techstars ( email )
1828 Walnut, 3rd Floor
Kansas City, MO 64108
United States
Benjamin Moulton
Harvard University - Department of Health Policy & Management ( email )
677 Huntington Avenue
Kresge Building
Boston, MA 02115
United States
HOME PAGE: http://www.hsph.harvard.edu/faculty/benjamin-moulton/
Informed Medical Decisions Foundation
40 Court Street
Suite 300
Boston, MA 02108
United States
HOME PAGE: http://informedmedicaldecisions.org/about-us/our-team/staff/communications-outreach-policy/
Dominique Pahud
Novartis Pharmaceutical Corporation - Novartis Oncology ( email )
United States
George Poste
Arizona State University ( email )
Mail Code: 9908
1475 N. Scottsdale Rd. SkySong - Suite 361F
Tempe, AZ 85287
United States
(480)727-8662 (Phone)
HOME PAGE: http://www.casi.asu.edu/
Franklyn Prendergast
Mayo Clinic Center for Individualized Medicine ( email )
200 First Street SW
Rochester, MN 55905
United States
(507) 284-4081 (Phone)
(507) 281-9349 (Fax)

Duke Innovation & Entrepreneurship Initiative ( email )
215 Morris St., Suite 300
Durham, NC 27701
United States
Jonathan Rauch
Brookings Institution ( email )
1775 Massachusetts Ave, NW
Washington, DC 20036
United States
Barak D. Richman

Duke University, School of Law ( email )
210 Science Drive
Box 90362
Durham, NC 27708
United States
919-613-7244 (Phone)
919-613-7231 (Fax)
Carl J Schramm
Syracuse University ( email )
900 S. Crouse Avenue
Syracuse, NY 13244-2130
United States
Gregory Simon
Pfizer, Inc. ( email )
235 East 42 Street
New York, NY 10017
United States
Joseph Smith
West Wireless Health Institute ( email )
10350 North Torrey Pines Road
La Jolla, CA 92037
United States
HOME PAGE: http://www.westwirelesshealth.org/
Dane Stangler
Ewing Marion Kauffman Foundation ( email )
4801 Rockhill Road
Kansas City, MO 64110-2046
United States
816-932-1044 (Phone)
John E. Tyler
Ewing Marion Kauffman Foundation ( email )
4801 Rockhill Road
Kansas City, MO 64110-2046
United States
816-932-1293 (Phone)
Columbia University ( email )
3022 Broadway
New York, NY 10027
United States
John Wilbanks
Sage Bionetworks ( email )
1100 Fairview Ave. North
Seattle, WA 98109
United States
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