Table of Contents

Preface.
Introduction.


PART ONE: WHY WE NEED CONSUMER-DRIVEN HEALTH CARE.


1. Fear and Loathing of Defined Benefit Health Insurance.


2. The Frayed Safety Net.


3. The Solution.


4. Consumer-Driven Health Insurance: What Works.


5. Health Care Productivity.


6. The Silent Revolution.


7. Scare Stories, Opponents, and the Role of Government.


8. How to Make Consumer-Driven Health Care Happen.


PART TWO: VISION AND MODELS.


9. The Future of Twenty-First Century Health (William W.
George).


10. How Employers Can Make Consumer-Driven Health Care a Reality
(Brian J. Marcotte).


11. Designing Health Insurance for the Information Age (John C.
Goodman).


12. Risk Adjustment: An Overview and Three Case Studies (Lisa I.
Iezzoni).


13. Consumer-Driven Health Care: Dialogues with Socrates
(Stephen S. Hyde).


14. Employee Tax Payments and Consumer-Driven Health Care
(Jeanne A. Brown).


15. The Implications of Tax Rulings on ?Savings
Accounts? (Charles H. Klippel).


16. You Just Can?t Pay Tom, Juan, and Ashley the Old Way
Anymore (Bonnie B. Whyte).


17. The Federal Employees Health Benefits Program (James W.
Morrison Jr.).


18. Health-Based Premium Payments and Consumer Assessment
Information (Vicki M. Wilson, Jenny M. Hamilton, Mary K. Uyeda,
Cynthia A. Smith, with Graydon M. Clouse).


19. The Buyers Health Care Action Group: Creating Incentives to
Seek the Sick (Ann L. Robinow).


20. An Insurance CEO?s Perspective on Consumer-Driven
Health Care (Leonard D. Schaeffer).


21. An Alternative to Managed Care: A European Perspective on
Informed Choice (Bruno L. Holthof).


22. Medical Savings Accounts and Health Care Financing in South
Africa (Shaun Matisonn).


23. European Health Care: The Cost of Solidarity and the Promise
of Risk-Adjusted Consumer-Driven Health Care (Paul Belien).


24. Consumer-Driven Health Care: An International View (Alvaro
Salas-Chaves).


25. Challenges of Consumer-Driven Health Care (Eugene D. Hill
III).


26. Making the Transition to Consumer-Driven Health Care (Jesse
S. Hixson).


27. The New Consumer-Driven Health Care System (Daniel H.
Johnson).


28. The Patient?s Right to Decide (Warner V. Slack).


29. Comments on Consumer-Driven Health Care (Corbette S.
Doyle).


30. The Evolution of Consumer-Driven Health Care (Robert W.
Coburn).


31. Will Consumer-Driven Health Care Work for Employers? (John
C. Erb).


32. The Perspective of an Advocate for the Elderly (John
Rother).


PART THREE: THE NEW INTERMEDIARIES.


33. Where Will Consumer-Driven Health Care Take the Health Care
System? (Bernard T. Ferrari).


34. The Role of Information: J. D. Power?s Paradigm
Lessons from the Automotive Industry (J. D. Power III).


35. Providing Information to Consumers (David Lansky).


36. Consumer-Driven Health Care and the Internet (Mark A.
Pearl).


37. The Present and Future Roles of Information in a
Consumer-Driven Health System (Russell Ricci).


38. Who Has Star Quality? (Jon A. Chilingerian).


39. Grounding Consumer-Driven Health Care in Social Science
Research (Arnold Milstein, Nancy E. Adler).


40. Providing the Most-Wanted Information When Most Needed: Best
Doctors (Steven W. Naifeh, Gregory White Smith).


41. The Half-Billion Dollar Impact of Information About Quality
(Becky J. Cherney).


42. Buyers Health Care Action Group: Consumer Perceptions of
Quality Differences (Katherine M. Harris, Roger Feldman, Jennifer
S. Schultz, Jon Christianson).


43. Helping Consumers Choose Among Complex Insurance Plans
(Colleen M. Murphy).


44. CareCounsel: Consumer-Driven Health Care Advocacy (Lawrence
N. Gelb).


45. Access Health Group: A Medical Management Perspective
(Joseph P. Tallman).


46. Consumer?s Medical Resource: Helping Consumers
Evaluate Medical Treatment Options (David J. Hines).


47. The Cost Effectiveness of Consumer-Driven Lifestyle Changes
in the Treatment of Cardiac Disease (Dean Ornish).


48. Healthtrac: Proven Reduction of the Need and Demand for
Medical Services (James F. Fries).


49. The Healthwise® Approach: Reinventing the Patient
(Donald W. Kemper, Molly Mettler).


PART FOUR: INNOVATIVE CONSUMER-DRIVEN SOLUTIONS TO CHRONIC
PROBLEMS.


50. The Role of Providers (Michael L. Millenson).


51. A Disease Management Approach to Chronic Illness (Jessie C.
Gruman, Cynthia M. Gibson).


52. Consumer-Driven Health Care: Management Matters (Richard M.
J. Bohmer, Amy C. Edmondson, Gary P. Pisano).


53. Consumer-Driven Health Care for the Chronically Ill (Al
Lewis).


54. A Cost-Effective Model for High-Quality Catastrophic Care
(Bernard Salick, Seth M. Yellin).


55 Collaborating with Consumers to Advance Health Knowledge and
Improve Practice (S. Robert Levine, Laura L. Adams).


56. Package Pricing at the Texas Heart Institute (Denton A.
Cooley, John W. Adams Jr.).


57. Helping Patients Manage Their Asthma: The National Jewish
Approach (Lynn M. Taussig, David Tinkelman).


58. A Model of Focused Health Care Delivery: Shouldice Hospital
(Daryl J. B. Urquhart, Alan O?Dell).


59. Chronic Problems, Innovative Solutions: Paving the Way to
the Focused Factory (Stuart Lovett).


60. Improving Health and Reducing the Costs of Chronic Diseases
(Robert E. Stone).


61. The Impact of Horizontal Integration in Hospitals: HCA
Healthcare Corporation (Thomas F. Frist Jr.).


62. An Innovative Approach to Population Health: Kaiser
Permanente Southern California (Les Zendle).


63. The Right Care: Vanderbilt Medical Center (Harry R.
Jacobson).


64. Achieving Focus in Hospital Care: The Role of Relational
Coordination (Jody Hoffer Gittell).


65. Consumer-Driven Health Care Is a Message of Hope (James F.
Rodgers).


66. An Academic Health Center Perspective (Roger J. Bulger).


67. Consumer Choice in Consumer-Driven Health Care
(François Maisonrouge).


68. Individual Genetic Profiles: The Empowerment of the Health
Care Consumer (Tony L. White).


69. Delivering the Right Drug to the Right Patient (Mark
Levin).


PART FIVE: THE ROLE OF GOVERNMENT.


70. The Uninsured: Understanding and Resolving an American
Dilemma (Jon R. Gabel).


71. A Health Insurance Tax Credit: The Key to More Coverage and
Choice for Consumers (David B. Kendall).


72. The Politics of Consumer-Driven Health Care (Eric S. Berger,
Carrie Gavora, Daniel H. Johnson).


73. Health Care: What Role for Regulation? (Karen Ignagni).


74. Adult Health Insurance (Ken Abramowitz).


75. AmeriChoice Corporation: The Personal Care Model (Anthony
Welters).


76. The Uninsured and Access (Constance G. Jackson).


77. Consumer-Driven Health Care for the Uninsured (Kevin
Vigilante).


78. A Health Care SEC: The Truth, The Whole Truth, and Nothing
But the Truth (Regina E. Herzlinger).


79. Keep ?Em Honest: The Health Care SEC (Robert N.
Shamansky).


80. The U.S. Needs a Consumer-Driven Medical Care System (Rita
Ricardo-Campbell).


81. Government?s New Roles in the Era of Consumer-Driven
Health Care (Richard A. D?Amaro).


The Editor.


The Participants.


The Contributors.


Name Index.


Subject Index.

About the Author

Regina E. Herzlinger is the Nancy R. McPherson Professor of Business Administration at the Harvard Business School.

Reviews

"Professor Herzlinger provides a compelling argument forconsumer-driven health care. The health care system has been markedfor decades with rising costs and consumer dissatisfaction.Professor Herzlinger challenges the reader to look beyond solutionsthat are based on what consumers should want to solutions that giveconsumers what they want."

--Barbara Bigelow, Ph.D., co-editor, Health Care ManagementReview, professor of management, Clark University GraduateSchool of Management



"Regina Herzlinger has a formidable reputation as an expert onreforming health care. There are lessons here for all of us whocare about reforming our health systems to make them better."

--David Willets, MP, Shadow Work and Pensions Secretaryand member of Parliament , UK.



"This book is a must-read for anyone who wants to know why theAmerican model of health insurance benefits that has been aroundfor about 50 years is all washed up, and what is most likely toreplace it."

--Roger Feldman, Blue Cross Professor of Health Insurance,University of Minnesota



"No other author in the health field could write a book likeConsumer-Driven Health Care, or make the kind of impact that ReginaHerzlinger can make on America's $1.5 trillion health careindustry. As one of the health field's most respectedeconomists and business strategists, Professor Herzlinger canpersuade corporate CEOs, Washington policymakers, benefitsadministrators, and hospital executives to reshape their strategybased on a market run by consumers. Remarkably, for an academic,she can write. This book translates health economics into simpleEnglish, reducing the "mystery-inside-a-conundrum"field into everyday transactions like selecting a health plan thatany health care consumer can recognize. Consumer-Driven HealthCare will be a top candidate for health care's 'book ofthe year.'"

--Russell C. Coile, Jr., consultant, editor, RussCoile's Health Trends, and author, Competing OnExcellence