Update on Health Care Reform

Notes from
the President
Thank you for the tremendous feedback we received on our first issue of CAPG Health. Your many responses indicate that
this new quarterly magazine is indeed a valuable resource for our members and for health care purchasers. We hope to make
each succeeding issue as interesting, useful and closely attuned to your needs as possible.
2007 was a very successful year for CAPG and its members in terms of building for the future. Our most important accomplishment
was gaining a valuable seat at the table in national discussions on the direction of health care in the United
States. We made three trips to Washington, DC, last year and visited with a wide range of leaders, many of whom were
unaware of CAPG and had little knowledge of how our members have transformed the concept of managed care. Because
of this unprecedented and intensive effort, many in the national leadership now know that California’s physician groups are
not only delivering exceptionally high-quality care, but are doing it in a cost-effective way. I can’t emphasize the importance
of this increased awareness, particularly in light of the current national dialogue on Medicare and Medicare Advantage.
While in Washington, we met with congressional leaders who will be addressing federal health care reform efforts, and we
appeared before the very important House Committee on Ways & Means. We also met with regulatory agencies and other
influential organizations, including CMS, AHRQ, Office of the National Coordinator for Health Information Technology
and AARP. In all these cases, we had the opportunity to explain how managed care techniques can eliminate, delay or
mitigate expensive chronic conditions. We were able to demonstrate the long-term cost difference these techniques can
make in treating the 5% of people who generate 55% of costs. CAPG member groups have been exceedingly successful in
delivering superior quality of care at lower long-term costs. Our challenge is to be certain the nation’s decision makers fully
understand our delegated model as they consider changes in our health care system.
We also continued our proactive Government Affairs effort in Sacramento, monitoring proposed legislation and providing
regular commentary to legislators. We sponsored SB 764, which would require a study to determine the number of primary
care physicians needed to keep up with the state’s growing population. I am proud to say we forged a strong relationship with
Gov. Arnold Schwarzenegger, taking a public position in support of his call for universal health care coverage. The governor
also supports our model of health care delivery. In an article in the last issue of CAPG Health, he wrote that he “embraces the
model of coordinated care as that is the most efficient and cost-effective way to deliver health care to the greatest number
of Californians.” There is no question that health care will be the hot topic of discussion in legislatures everywhere in the
immediate future. And change, whether good or bad, will be mandated. It is absolutely crucial that we have a presence
whenever and wherever those discussions take place.
I’m particularly excited about another project started last year that exemplifies our organizational mission — to improve
health care for Californians. Our new data-sharing program is designed to improve access to information that can aid in
the diagnosis and/or treatment of individuals and populations. The program sets forth a “code of conduct” agreed upon by
physician groups and health plans, which, for the first time, encourages and enables the sharing of clinical, pharmaceutical,
disease management and other data that can benefit the groups, the plans and, most importantly, their patients. We also
inaugurated a new Standards of Excellence program aimed at the same mission — to improve health care for Californians.
Last year, 85 CAPG member groups participated, voluntarily assessing their performance and reaching out to attain even
higher standards.
CAPG is your organization, and it works because of the contributions of a talented board of directors, a variety of hardworking
committees, a dedicated staff and members who share their views and ideas. Thanks to all of you for a rewarding
year.
Donald Crane
President, CAPG
6 | CAPG HEALTH WINTER 2008