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How Reform Went Wrong

THE PROBLEMS with the U.S. health care system are not the result of inattention. Well-intended reformers have long recognized that the system has been on a collision course with demographic and economic reality. However, reform efforts have failed because the diagnosis of the problem was wrong. As we saw in chapter 2, the fundamental problem is that competition in health care operates at the wrong level and focuses on the wrong things. The absence of value-based competition on results has had consequences that have been widely misunderstood by both reformers and system participants. With the wrong diagnosis, the attempts to treat the system have addressed the wrong issues or offered piecemeal, ultimately ineffective ...

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