Op-Ed: Louisiana Can Set the PACE for Market Innovations
"Louisiana has an opportunity to lead with an approach that harnesses market forces to deliver better health care at lower cost," writes Daniel Erspamer, CEO of the Pelican Institute for Public Policy, in an op-ed. "PACE offers an all too rare example of how private innovation within a government program can solve public problems without expanding bureaucracy or breaking state budgets."
PACE succeeds because it takes a market-based approach often missing from government health care programs, he noted. "Private organizations assume full financial risk for patient outcomes under fixed capitated payments. This creates powerful incentives to innovate, eliminate waste, and focus on prevention rather than expensive interventions. Studies have shown these programs deliver better health outcomes at 15 to 20 percent lower cost than traditional fee-for-service models."