The Future of Healthcare: Why Value-Based Care and AI need Each Other – And why Full Circle Health is Leading the Way
The promise of generative AI in medicine is immense. But groundbreaking technology alone isn’t enough to fix a broken system. To truly revolutionize healthcare, we need to address the fundamental flaws in how we pay for it.
For too long,the dominant “fee-for-service” model has incentivized more care,not better care. This system rewards volume of procedures, regardless of patient outcomes or actual value delivered. It’s a critical roadblock to progress.
Shifting the Paradigm: Pay-for-Value is Essential
The future demands a shift to a “pay-for-value” approach, often referred to as capitation. This aligns incentives for doctors, hospitals, and, most importantly, you, the patient. Imagine a healthcare system focused on keeping you healthy, rather than simply treating you when you’re sick.
We need a true “health system,” not a “disease system.” Generative AI‘s potential will only be fully realized within a value-based care framework. This is where physicians and organizations are rewarded for preventative care and positive health outcomes, not just the number of tests or procedures performed.
Full Circle Health: A Model for the Future
That’s why Full Circle Health in Idaho is so inspiring. For 50 years, this Federally Qualified Health Center has demonstrated that value-driven medicine isn’t just a concept – it’s a reality. They’ve consistently provided high-quality, affordable care to tens of thousands of Idahoans, regardless of thier ability to pay.
And now, with the advent of generative AI, this model is becoming increasingly scalable. full Circle Health isn’t waiting for the future; they’re building it.
Leading the Charge: Courage, Collaboration, and Cooperation
Meaningful progress in healthcare requires leadership. It demands courage to challenge the status quo, collaboration between all stakeholders, and a commitment to cooperation. Specifically, we need:
* Payment models that prioritize prevention and partnership.
* Organizations willing to champion value-based care.
* A focus on proactive health management, not just reactive treatment.
I recently had the honor of joining Dr. Ted epperly and the entire Full Circle Health team at their 50th-anniversary celebration. Their dedication to value-based care, medical education, and serving all idahoans embodies the leadership healthcare desperately needs today.
Breaking the Trail: How Change Will Happen
I’m frequently asked how we can accelerate change in healthcare. The frustration is palpable - despite widespread recognition of the problems, progress feels agonizingly slow.
My answer is simple: visionary organizations like Full circle Health will lead the way. Just as the first individuals to traverse a snow-covered path make it easier for others to follow, Full Circle Health is blazing a trail for a better healthcare future.
As more organizations adopt their model, the path will widen and become more accessible. I’m confident that Boise, and Full Circle Health, will play a pivotal role in shaping the future of American medicine.
About the Author:
Dr. Robert Pearl is the former CEO of The Permanente Medical Group (Kaiser Permanente), the largest physician group in the nation. He is a Forbes contributor, bestselling author, stanford University professor, and host of two healthcare podcasts.
His latest book,ChatGPT,MD: How AI-Empowered Patients & Doctors Can Take Back Control of American medicine,explores the transformative potential of AI in healthcare. All profits from the book are donated to Doctors Without Borders. You can find it on Amazon.
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