Minnesota seeks higher-quality, lower-priced health care

A purchasers alliance will reward physicians and health plans for meeting standards, but experts want to know who will set the standards.

By Joel B. Finkelstein, AMNews staff. Jan. 3/10, 2005.

Washington -- A new cost-saving plan put forth by the governor of Minnesota has some physicians worried that the state is going to give up its title as the healthiest in the nation.

Minnesota has earned that distinction nine times in the United Health Foundation annual report, which bases its rankings on rates of health coverage, heart disease, infant mortality and other health factors, which always have been emphasized in the state.

During his campaign, Gov. Tim Pawlenty promised not to raise taxes, and in a state reeling from budget shortfalls, that means cutbacks are inevitable. So, bound by his campaign promise, Pawlenty has been seeking ways to slow the rising cost of health care -- one of the state's biggest expenses.

Pawlenty recently announced the launch of the "Smart Buy" purchasing alliance. The alliance was formed to use market forces to drive higher-quality care, better use of technology and improved management of chronic conditions, according to a statement.

It is made up of large employers, including the state government itself, who will use their combined purchasing power and financial incentives to encourage health plans, hospitals and physicians to meet quality standards and other goals set forth by the group.

The plan, which state officials say can be implemented without legislative action, is the first product of the governor's "Health Cabinet," a quasi-official body set up to devise ways to blunt dramatically rising health care costs.