Should the government “criminalize” efficiency gains?

Efficiency gains should NOT be criminalized because they encourage the health care system to provide the best care we all deserve. At one point in time, HCPs paid under the ACR system will achieve efficiency gains by decreasing the overall cost of health care. HCPs do this by meticulously deciding on what and what not to produce. This is not only good for the patient but also for the purchaser (i.e. PhilHealth). In a study conducted by PIDS, efficiency gains actually helped a hospital to produce more for their patients. 


“With CBP, DOH-retained hospitals used the money saved from the CBP to add extra beds, build another wing or ward, and buy drugs and medical supplies.”


Who are we then to say that is wrong? This is one concrete example of how and what the health system gains from using CBP or ACR. We are NOT “overpaying” HCPs. We are giving them the incentive to produce quality care at the lowest cost possible. And the savings they gain from being efficient are earmarked to programs and projects that are palpable and helpful to our patients. This is not say that encouraging efficiency is the same as encouraging them to underserve. Our post-audit mechanism ensures that while HCPs are encouraged to become more efficient, they are mandated to provided quality care.

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