Mergers In State Health Reform: Increased Efficacy or More Bureaucracy?

Photo by bigsurf via flickr

A health care coordination and consolidation proposal successfully made its way through the West Virginia Legislature last week and is currently awaiting the Governor’s signature.  The wide-ranging reform creates a cabinet-level office to coordinate health reform across West Virginia, consolidating many existing state agencies and programs– including public hospitals and the health reform efforts of state colleges and universities.  It even comes with a catchy acronym to boot– GOHELP: Governor’s Office of Health Enhancement and Lifestyle Planning.

State Delegate Don Perdue told the The Herald-Dispatch, “Health reform has been tried a number of times.  It fails because one agency is not talking to another, because the vision somewhere gets lost in the process.”  One might imagine Delegate Perdue to be referring to health reform in just about any state– and even the federal government.  Are West Virginia legislators so far ahead of our representatives in Washington?  Hopefully not.  As our blog reported last week (Obama Officially Establishes White House Office of Health Reform), President Obama recently signed an executive order with an arguably similar purpose: work with several federal executive branch agencies, states and local officials, and Congress to enact health reform and develop and implement strategic initiatives to strengthen the performance of the health care system.

In Massachusetts, Governor Deval Patrick isn’t having as much luck.  The Boston Globe reports of a letter the Governor wrote to the chair of the state’s Health and education Facilities Authority (HEFA) instructing the agency to merge with the state’s Development Finance Agency by July 1, 2009.  The Governor’s office maintains that the merge will enhance HEFA’s ability to provide tax-exempt financing for hospitals and health facilities (as well as state educational institutions).  Critics see the attempt as a “power grab” and an attack on the safeguards that keep HEFA, and other quasi-public authorities like it, safe from political pressure and “gubernatorial interference.” Read more

Obama Officially Establishes White House Office of Health Reform

President Obama signed an executive order yesterday establishing the White House Office of Health Reform, taking an important first step in formalizing his plans for U.S. health care reform.  The Washington Post reports that the office will be headed by Nancy-Ann DeParle, a former Clinton administration health official. 

Photo by Bethany L King via Flickr

According to the executive order, the White House Office of Health Reform will work with executive branch agencies, state and local officials, and Congress to enact health reform legislation. 

The Office of Health Reform is also charged with bringing to the President’s attention “concerns, ideas, and policy options for strengthening, increasing the efficiency, and improving the quality of the health care system.”  Additionally, the order calls for the office to “develop and implement strategic initiatives under the President’s agenda to strengthen the public agencies and private organizations that can improve the performance of the health care system.”  

Said President Obama in his executive order,

“The health care system suffers from serious and pervasive problems; access to health care is constrained by high and rising costs; and the quality of care is not consistent and must be improved, in order to improve the health of our citizens and our economic security.”   

Obama’s executive order also calls for the establishment of an Office of Health Reform within the Department of Health and Human Services.  Visit HealthReform.gov for more information.

Read the executive order in its entirety here.