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Cleveland Clinic CEO Dr. Toby Cosgrove breaks down how the Supreme Court's decision on health care will impact hospital and insurance industries.
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Thank you so much Peter -- All right well how does today's ruling impact the health care system right now let's find out my next guest overseas a five billion dollar health care system.
And last year more than four point two million patients visited his hospitals -- -- as doctor -- cost growth.
Young president does that Cleveland clinic doctor Oscar de tat with us today -- -- -- really like OK so if you look at the market reaction to this.
A broad sell -- overall but hospital stocks in particular.
Are popping insurance stocks are selling off so.
If you look at the message just in those two industries -- could presume.
Individual mandate -- services will be greater demand and there'll be no disruptions for hospitals and doctors who've really been planning.
For Affordable Care Act over the last two years do you agree with that take away.
Well certainly we know that we're gonna see more patience and we're gonna get paid less for them and we know that we have been preparing for the last three years to take care of an increased number of patients and be paid less.
We know that we have to improve the quality we and we worked hard at that we've taken a lot of cost out we have many small lot more cost the -- I think they're real question is what does this mean as far as the total cost of health care across the country and we know.
That is have improved access it's gradually improving quality if we know also that it's going to cost more for the entire country.
Now doctor cost of you are actually on the record suggesting that what the Supreme Court rules doesn't matter because Health Care Reform is already in place so upon hearing.
That decision and from your comments to me just -- seems like you're still kind of on that that might.
Well we certainly know that the Health Care Reform has already started we have started you seeing consolidation of hospitals across the country you seen doctors become more.
Doctors are employed.
You seen now beginning to try to drive the efficiency across the -- of the health care system.
And this is movement that is already taking place and a lot of the portions of the bill are already.
Be enacted for example we now have three million people who were 126 covered.
So things are already happening in will continue to happen in the reason -- to have that that we have to change it.
Is because we have more older people with more chronic disease we have a very expensive health care delivery system and we got to continue to improve the quality.
Given -- cost burdens are you concerned that the hospital system in this country right now is at risk of becoming overburden and also because of which is just sent the growing population of senior citizen.
Yes I think we will see more patience but you know it's interesting the diseases to we're seeing now.
Are not the acute diseases which patients get hospitalized for as much -- chronic diseases.
And hospitals like here is now moving to outpatient care and eventually -- home care but nonetheless it is does that the expense so that is the major.
That burden is probably not going to be just on the hospitals will be on the whole system.
All right what is sure take away on the supreme court's.
It's ruling on Medicare was really kinda tough to understand the states don't necessarily.
Half to abide by the federal government in order to get that Medicare finding what's what's your take -- what's your understanding of it how will it affect the hospital system especially -- managed care operators.
Well I certainly in constitutional lawyer in -- that.
I mining industry but but I I do think that that most states will take the opportunity to take the financing.
And it expand their Medicare -- if you got it because.
26%.
Of the house states' budgets now is from Medicare and -- from -- -- breaking the budget in most states so they'll need the additional funding.
OK if it does that additional funding -- help the -- -- hospital industry continue with the latest and greatest technology and treatments.
Well I certainly hope it does were counting on being able to continue to improve the quality care and I think the most important thing that we need to go do going forward is begin to coordinate care across our whole health care system.
And not have is much competition.
And duplication of services more coordination from and more wellness.
Activities to decrease the chronic disease that we seek.
And I across this country.
Well doctor Toby Custer thank you for your insights -- this really giving us a ground floor you put the Supreme Court ruling on health care needs to our.
