Skip to content
  • About
  • Contact
  • Contribute
  • Book
  • Careers
  • Podcast
  • Recommended
  • Speaking
  • All
  • Physician
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • Video
    • All
    • Physician
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • Video
    • About
    • Contact
    • Contribute
    • Book
    • Careers
    • Podcast
    • Recommended
    • Speaking

Curbing health care costs: 3 reforms for a more efficient system

Aamir Hussain, MD
Policy
February 21, 2025
Share
Tweet
Share

The United States health care system is plagued by inefficiencies that drive up costs and limit access to care. The Department of Government Efficiency has a crucial role to play in addressing this challenge. As a physician, I often strive to practice cost-conscious care whenever possible. Three common-sense broad reforms—repealing Certificate of Need (CON) laws, implementing universal physician licensing, and advocating for site-neutral payment reform—offer significant opportunities to reduce health care spending while improving patient care.

Repealing Certificate of Need (CON) laws

Certificate of Need (CON) laws are state regulatory mechanisms that require health care providers to obtain state approval before making significant capital expenditures or expanding services. These laws were originally designed to control health care costs by preventing the duplication of services and ensuring that new facilities were necessary for the community. However, CON laws often have the opposite effect. By restricting the entry of new providers and limiting competition, they enable existing facilities to maintain high prices and limit patient choice. Studies have shown that repealing these laws can lead to increased competition, lower prices, and improved access to care. For instance, in states that have repealed CON laws, there has been a notable increase in the number of health care facilities, which has enhanced access to care, especially in rural areas. Estimates suggest that repealing CON laws nationwide could save the health care system approximately $500 million annually. Additionally, during the COVID-19 pandemic, temporary suspensions of CON laws allowed for a rapid increase in hospital bed capacity, demonstrating the potential benefits of permanent repeal.

Implementing universal physician licensing

The current system of state-by-state physician licensing creates unnecessary barriers to health care delivery. These burdensome requirements hinder the mobility of health care providers, exacerbating shortages in underserved areas. Maintaining multiple licenses also imposes significant administrative costs on physicians, estimated at over $1 billion annually by the Niskanen Center. Universal physician licensing (similar to that of driver’s licenses) would not only reduce these costs but also facilitate the delivery of telemedicine services, improving access to care, particularly in rural areas. For example, states that have adopted universal licensing recognition have seen an increase in health care utilization and a reduction in the number of patients who forgo care due to cost. This reform would also support military families and other mobile populations by allowing health care providers to practice across state lines without the need for multiple licenses.

Universal physician licensing would function similarly to state driver’s licenses. Just as a driver’s license issued in one state is recognized across all states, a universal physician license would allow doctors to practice in any state without needing to obtain separate licenses. This system would streamline the licensing process, reduce administrative burdens, and enhance the mobility of health care providers.

Advocating for site-neutral payment reform

Another significant source of waste stems from the current payment system, which favors hospital settings over outpatient facilities for the same services. This discrepancy incentivizes hospitals to acquire outpatient practices and charge inflated rates, driving up costs for patients and insurers. Site-neutral payment reform, which would equalize reimbursement rates regardless of location, would address this inefficiency and encourage the most cost-effective delivery of care. The Medicare Payment Advisory Commission (MedPAC) has estimated that site-neutral payment policies could save Medicare $30 billion over a decade. Extrapolating these savings to the broader health care system suggests potential cost reductions exceeding $100 billion. Moreover, such reforms could reduce the financial incentives for hospital consolidation, promoting a more competitive and efficient health care market.

Conclusion

The Department of Government Efficiency has a unique opportunity to champion three common-sense reforms that will reduce health care waste by hundreds of billions of dollars annually. These reforms not only address critical cost-containment issues but also promise to improve access to care, particularly for underserved populations.

Aamir Hussain is a dermatologist.

Prev

How to know if your leadership is effective

February 21, 2025 Kevin 1
…
Next

Innovative training strategies to reduce physician burnout [PODCAST]

February 21, 2025 Kevin 0
…

Tagged as: Public Health & Policy

Post navigation

< Previous Post
How to know if your leadership is effective
Next Post >
Innovative training strategies to reduce physician burnout [PODCAST]

ADVERTISEMENT

More by Aamir Hussain, MD

  • The origin of medical licensing exams

    Aamir Hussain, MD
  • Understanding Ramadan: a guide for dermatologists treating Muslim patients

    Aamir Hussain, MD
  • The case for cryptocurrency payments in health care

    Aamir Hussain, MD

Related Posts

  • Unveiling the intricate link between housing costs and health care

    Harvey Castro, MD, MBA
  • How inflation fueled health care costs

    Ricardo Chujutalli, MD, MBA and Jessica Yoong
  • Clinicians unite for health care reform

    Leslie Gregory, PA-C
  • Global aspirations for value-based health care

    Paul Pender, MD
  • Fostering health care innovation through federal policy: a case for direct primary care

    Christopher Habig, MBA
  • States have the power to influence health care

    Ruhi Saldanha

More in Policy

  • The One Big Beautiful Bill and the fragile heart of rural health care

    Holland Haynie, MD
  • Why health care leaders fail at execution—and how to fix it

    Dave Cummings, RN
  • Healing the doctor-patient relationship by attacking administrative inefficiencies

    Allen Fredrickson
  • The hidden health risks in the One Big Beautiful Bill Act

    Trevor Lyford, MPH
  • The CDC’s restructuring: Where is the voice of health care in the room?

    Tarek Khrisat, MD
  • Choosing between care and country: a dual citizen’s Independence Day reflection

    Kathleen Muldoon, PhD
  • Most Popular

  • Past Week

    • Forced voicemail and diagnosis codes are endangering patient access to medications

      Arthur Lazarus, MD, MBA | Meds
    • How President Biden’s cognitive health shapes political and legal trust

      Muhamad Aly Rifai, MD | Conditions
    • The One Big Beautiful Bill and the fragile heart of rural health care

      Holland Haynie, MD | Policy
    • Why timing, not surgery, determines patient survival

      Michael Karch, MD | Conditions
    • Why health care leaders fail at execution—and how to fix it

      Dave Cummings, RN | Policy
    • How digital tools are reshaping the doctor-patient relationship

      Vineet Vishwanath | Tech
  • Past 6 Months

    • Forced voicemail and diagnosis codes are endangering patient access to medications

      Arthur Lazarus, MD, MBA | Meds
    • How President Biden’s cognitive health shapes political and legal trust

      Muhamad Aly Rifai, MD | Conditions
    • Why are medical students turning away from primary care? [PODCAST]

      The Podcast by KevinMD | Podcast
    • The One Big Beautiful Bill and the fragile heart of rural health care

      Holland Haynie, MD | Policy
    • Why “do no harm” might be harming modern medicine

      Sabooh S. Mubbashar, MD | Physician
    • The hidden health risks in the One Big Beautiful Bill Act

      Trevor Lyford, MPH | Policy
  • Recent Posts

    • FDA delays could end vital treatment for rare disease patients

      G. van Londen, MD | Meds
    • Pharmacists are key to expanding Medicaid access to digital therapeutics

      Amanda Matter | Meds
    • Why ADHD in women requires a new approach [PODCAST]

      The Podcast by KevinMD | Podcast
    • AI is already replacing doctors—just not how you think

      Bhargav Raman, MD, MBA | Tech
    • Why doctors must stop ignoring unintentional weight loss in patients with obesity

      Samantha Malley, FNP-C | Conditions
    • Why more doctors are choosing direct care over traditional health care

      Grace Torres-Hodges, DPM, MBA | Physician

Subscribe to KevinMD and never miss a story!

Get free updates delivered free to your inbox.


Find jobs at
Careers by KevinMD.com

Search thousands of physician, PA, NP, and CRNA jobs now.

Learn more

Leave a Comment

Founded in 2004 by Kevin Pho, MD, KevinMD.com is the web’s leading platform where physicians, advanced practitioners, nurses, medical students, and patients share their insight and tell their stories.

Social

  • Like on Facebook
  • Follow on Twitter
  • Connect on Linkedin
  • Subscribe on Youtube
  • Instagram

ADVERTISEMENT

  • Most Popular

  • Past Week

    • Forced voicemail and diagnosis codes are endangering patient access to medications

      Arthur Lazarus, MD, MBA | Meds
    • How President Biden’s cognitive health shapes political and legal trust

      Muhamad Aly Rifai, MD | Conditions
    • The One Big Beautiful Bill and the fragile heart of rural health care

      Holland Haynie, MD | Policy
    • Why timing, not surgery, determines patient survival

      Michael Karch, MD | Conditions
    • Why health care leaders fail at execution—and how to fix it

      Dave Cummings, RN | Policy
    • How digital tools are reshaping the doctor-patient relationship

      Vineet Vishwanath | Tech
  • Past 6 Months

    • Forced voicemail and diagnosis codes are endangering patient access to medications

      Arthur Lazarus, MD, MBA | Meds
    • How President Biden’s cognitive health shapes political and legal trust

      Muhamad Aly Rifai, MD | Conditions
    • Why are medical students turning away from primary care? [PODCAST]

      The Podcast by KevinMD | Podcast
    • The One Big Beautiful Bill and the fragile heart of rural health care

      Holland Haynie, MD | Policy
    • Why “do no harm” might be harming modern medicine

      Sabooh S. Mubbashar, MD | Physician
    • The hidden health risks in the One Big Beautiful Bill Act

      Trevor Lyford, MPH | Policy
  • Recent Posts

    • FDA delays could end vital treatment for rare disease patients

      G. van Londen, MD | Meds
    • Pharmacists are key to expanding Medicaid access to digital therapeutics

      Amanda Matter | Meds
    • Why ADHD in women requires a new approach [PODCAST]

      The Podcast by KevinMD | Podcast
    • AI is already replacing doctors—just not how you think

      Bhargav Raman, MD, MBA | Tech
    • Why doctors must stop ignoring unintentional weight loss in patients with obesity

      Samantha Malley, FNP-C | Conditions
    • Why more doctors are choosing direct care over traditional health care

      Grace Torres-Hodges, DPM, MBA | Physician

MedPage Today Professional

An Everyday Health Property Medpage Today
  • Terms of Use | Disclaimer
  • Privacy Policy
  • DMCA Policy
All Content © KevinMD, LLC
Site by Outthink Group

Leave a Comment

Comments are moderated before they are published. Please read the comment policy.

Loading Comments...