Health-care groups pledge savings

With leading health-care industry groups offering the Obama administration $2 trillion in savings over the next decade, School of Management Professor Stephen Davidson can discuss the implications.  He is the author of the soon to be published book “In Urgent Need of Reform: Saving the U.S. Healthcare System.”

“These organizatons are promising to reduce their charges in order to reduce the rate of increase in health care costs.  If it works, that would benefit many individuals needing services.  Their share of premiums might go up less because the insurers that provide their coverage would be paying out less to providers.

“There are two big ‘ifs.’  First is that since many of these organizations are membership groups, it will only work if their members — the companies and professionals providing the services and products — agree to do so.  Second, even if physicians and hospitals agree to hold the line on their charges, if the volume of services increases, expenditures will continue to rise.”

Contact Stephen Davidson, 617-353-7422, sdavidso@bu.edu

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