Executive Summary

Healthy CA: Universal Healthcare with 2020 Vision

Executive Summary

Healthy CA is a 21st Century, single payer healthcare solution that connects a fragmented system, automates all administrative tasks, and incentivizes healthy outcomes while providing universal access at 2/3 of our current costs. By incorporating interoperability and applying endogenous economic theory, Healthy CA creates a sustainable system that addresses the industry's biggest problems. 

The primary problem of our current system is the out-of-control growth in healthcare costs. Healthcare costs are currently rising twice as fast as inflation. This plan addresses the four biggest contributors in rising healthcare costs: preventable chronic disease, an antiquated provider compensation model, and price gouging by hospitals and pharmaceutical companies. Addressing these problems is imperative if we are to achieve a sustainable healthcare system.

However, the problem that plagues our system's ability to deliver care efficiently is the fragmentation of the industry as a whole. The HMO model currently represents the most efficient health system for delivery of care. Its success is derived from its connectivity: patients, providers, facilities, labs and pharmacies within the system all have access to health data on the same software platform. This interoperability alone justifies a single player system as it creates enormous opportunities on three fronts: (1) the administrative efficiency lowers costs; (2) the communication between systems and people improves care; and (3) the data analytics provides opportunities to improve medicine in ways we have yet to even consider.
 
Healthy CA embraces the interoperability of the HMO model but also applies Nobel Prize winner Paul Romer's endogenous economic theory for growth: (1) invest in technological innovation and (2) invest in human capital, i.e. the physical and mental wellness of California's residents. The result will be a healthcare system that lowers the cost of healthcare, improves the quality of care, creates a desirable environment for the best practitioners, and improves the state economy. 

(1) Invest in technological innovation in order to:
  • Increase access to care through telehealth services and remote patient management. 
  • Automate all administrative tasks including billing, scheduling, referrals, claim adjudication, appeals, etc.
  • Improve patient outcomes through connectivity of service providers.
  • Provide a secure cloud-based platform that will process and record all transactions, manage the supply chain of drugs, maintain patient records, and provide analytics. 
(2) Invest in the physical and mental wellness of our residents to:
  • Institute additional preventative medicine techniques.
  • Educate residents on how to lead healthier lifestyles.  
  • Encourage provider access by eliminating high deductibles. 
  • Expand awareness and wellness programs for the mentally ill and those suffering from addiction.
  • Incentivize patients to improve their state of health.  
Transparency, efficiency, privacy, choice, simplicity and accessibility will be the hallmarks of Healthy CA, but its positive effect on California's economy will be the factor that allows its sustainability. The bedrock of capitalism is a healthy and well-trained workforce. By investing in technology and the health and wellness of our residents, we will foster a more productive workforce, a broader tax base, a business-friendly environment, and a healthcare model that will help ensure a bright future for California.

For an overview of how Healthy CA would work, click here.

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