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Our View: New state plan better than privatization

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For Immediate Release
Friday,March 21, 2014
Our View: New state plan better than privatization
Fayetteville Observer
March 19, 2014


Maybe this plan will do what others haven't accomplished. Maybe it will help this state get a handle on its Medicaid expenses, and even get those titanic costs under control.

Or maybe it won't. But we do believe that the state Department of Health and Human Services is on a better course with the Medicaid management plan it unveiled on Monday.


The reform program introduced this week would create "accountable care organizations," networks of primary-care physicians and hospitals that would be given financial incentives to keep costs down. It also would require them to share in the cost of overruns.

The new system would impose quality-of-care standards on participants. It has already gotten buy-in from the North Carolina Hospital Association, which had strongly opposed the privatization initiative. Association Vice President Hugh Tilson says, "We know we have to move from a volume-based system to a value-based system. We have to change the way that care is provided and is paid for, to really do what's right for the patient."


The General Assembly will get the new plan in May and will have the final word on adopting it. But at first glance, it appears to be a significant improvement.

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