Dear Colleagues and Friends,

Earlier this month, we released our annual evidence report that examines the impact of primary care practice transformation on cost, quality, and utilization. While not every study examined was unilaterally positive, the overall finding is that advanced primary care is making a difference.

More specifically, the report authors conclude that “overall, analysis of the studies revealed that the longer a practice had been transformed, and the higher the risk of the patient pool in terms of co-morbid conditions, the more significant the positive effect of practice transformation, especially in terms of cost savings.”

It’s encouraging news that advanced primary care accrues cost savings over time and that quality is mixed or positive, but an aspect that the report does not examine is the under-investment in primary care in the United States as compared to other industrial countries. The U.S. allocates, on average, 5-7% of its health care spending to primary care, while healthcare systems across the pond invest 12-14%, or twice as much in primary care.

Some states have rightfully identified this as an issue and have begun using regulatory or legislative strategies to bolster primary care spending. For example, Rhode Island’s Insurance Commissioner used his regulatory authority to boost health plan primary care spending as a percentage of medical spending from approximately 5% in 2008 to between 8-11% in 2014. During this time period, overall health spending in Rhode Island grew slower than in any other New England state.

And just this month, Oregon passed Senate Bill 934, which requires the “coordinated care organization, Public Employees’ Benefit Board and Oregon Educators Benefit Board to spend at least 12% of total medical expenditures on primary care by January 1, 2023.”  Per this legislation, the additional spending on primary care must be directed to designing or implementing advanced payment models and providing integrated person-centered care and services.

The PCPCC supports both the transformation of primary care and efforts to direct more resources to primary care practices.  Both of these themes will be taken up by speakers at our annual conference on October 11-12 in Washington, D.C. 
  
I look forward to seeing you there this fall!




Ann Greiner, MCP
President & CEO