Deirdre Baggot Writes About Four Things The Healthcare Industry Needs To Get Right For The Upcoming Changes

Deirdre Baggot has been in the healthcare industry for over 20 years. She is one of the foremost authorities when it comes to reforming the healthcare payment system and has provided insight in numerous ways about this, including on PBS shows like Morning Edition and Planet Money. She was one of the industry pioneers who developed the CMS Acute Care Episode program which is a form of bundled payment. She is also a consultant who uses her deep experience in the industry to advise healthcare company executives and officials about their business strategies and approach to bundled payments. Read More articles at to learn more.

The Centers for Medicare and Medicaid Innovation has started a national pilot of their new bundled payments system. The entire health system follows what Medicare does so this is a very important development in the industry. Deirdre Baggot says that in order to achieve success there are four things about bundled payments that every healthcare organization needs to fully understand in order to make this new system work.

The first rule she brings up is that healthcare providers need to provide everything that their patient needs while leaving out everything that they don’t. Currently people in this industry balance what a patient needs with what the patient and/or their families think they need, which can lead to litigation if patients don’t get what they want. Bundled payments seek to solve this issue by creating discipline in the industry to only do and prescribe what a patient truly needs.

Second, there is no volume play anymore. This means that healthcare companies need to lower the cost of care because they won’t receive Medicare discounts anymore. Third, healthcare companies will need to be effective at change management. Hospitals can build up things like unquestioned routines over time and become resistant to change. Good managers will encourage people in the organization to change through both accomplishments and errors.

Finally, Deirdre Baggot says that healthcare management will need to become very familiar with what real accountability looks like. She says that bundled payments are a health reform that uses an evidence-based approach. Best practices need to be followed because it will no longer be an option but a requirement. Visit: