... Opportunity for Two Mutually Reinforcing Cycles: Information + Incentives e Improving incentives for providers and consumers is also critical. — Providers need appropriate incentives to improve quality of care and lower costs. — Drivers include more widespread adoption of bundled payments and accountable care organizations. — Tort reform could play an important role. — Consumers need to take more responsibility for their own health and to utilize the healthcare system appropriately. — Appropriate social and financial incentives are key. KP Source: Morgan Stanley Healthcare Research. i USA Inc. | What Might a Turnaround Expert Consider? 305 Restructure Medicare & Medicaid: Economic Factors—Possible Solutions 1) Cost-Sharing and/or 2) Reimbursement Reform and/or 3) Improving Cost & Quality Transparency and/or 4) Deploy Cost-Benefit Analysis for Medical Technology Spending (@)E) www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 306 HOUSE_OVERSIGHT_020994