Policy & Regulation News

AMA Bolsters Healthcare Economics Training for Future Physicians

The AMA calls on medical schools to boost healthcare economics training by adding content related to the structure and financing of the modern healthcare system.

By Samantha McGrail

- The American Medical Association (AMA) adopted a new policy calling on all medical schools and residency programs to include healthcare economics training related to the structure and financing of the current healthcare system in their curricula, according to a recent press release.

Specifically, the AMA encourages medical schools and residency programs to implement content around healthcare delivery, modes of practice, practice settings, cost effective use of diagnostic, treatment services, practice management, risk management, and quality assurance. 

The policy intends to make certain that students understand the current environment and economics of medical practice in fee-for-service, as well as managed care, and other financing systems at a time when it is educationally appropriate during their training. 

“While many medical schools and residency programs currently provide students and residents with training in healthcare financing, it has become clear that future physicians require further instruction to ensure they are well-prepared to deliver care to patients in modern health systems,” Barbara L McAneny, MD, AMA immediate past president, said in the press release.

Providers are having to better understand healthcare economics to succeed in the modern system. The healthcare industry is gradually moving away from fee-for-service, which pays providers based on the volume of services rendered, to value-based reimbursement, which links payments to the value of care. These value-based reimbursement models intend to drive down healthcare costs, enhance quality of care, and improve patient satisfaction.

The healthcare industry is on its way to eliminating fee-for-service. Specifically, 39.1 percent of healthcare payments made in 2018 were through a fee-for-service with no relation to quality or value, according to an analysis of 62 health plans, seven fee-for-service Medicaid states, and traditional Medicare.

In order to succeed in this value-based economy, providers must understand the costs behind the care they deliver to patients.

AMA wants to help support future physicians by improving education. This policy builds on the AMA’s previous efforts to incorporate Health Systems Science Curriculum, as it provides training on medical economics through medical schools and residency programs, which intends to transform the way future physicians are trained to deliver care within modern health systems, the press release stated.

Health System Science emerged in 2016 as one of the most prominent innovations developed through the AMA’s Accelerating Change in Medical Education Consortium and is now considered the third pillar of medical education. The other two pillars are basic and clinical sciences.

The AMA has developed various resources to improve medical education, including a Health Systems Science textbook, which tries to ensure physicians-in-training enter practice with a solid understanding of how healthcare is delivered and how it can be improved through collaboration with other healthcare professionals. Currently, the textbook is being used in more than 30 medical and health professions schools and residency programs, and the next edition of the book is anticipated to be published in 2020. 

Other AMA efforts to enhance medical education to prepare future physicians for the modern healthcare system include a Health Systems Science Review book and the Health Systems Science Learning Series, which both help physicians-in-training evaluate and develop their capabilities in Health Systems Science and readiness for navigating modern health systems. 

Additionally, through the AMA’s Graduate Medical Education Competency Education Program (GCEP), students will find a series of online educational modules designed to complement programs in order to understand concepts at a deeper level, including how payment models affect patient care and costs, according to the press release.

The AMA is currently working with the National Board of Medical Examiners to develop a standardized exam, to guarantee medical and other health professions students are practiced in Health Systems Science. The exam is expected to be released at the end of this year.

The AMA emphasized that they will continue their efforts to drive the future of medicine by “reimaging medical education, training and lifelong learning-ensuring physicians are better equipped to provide care in the rapidly-evolving health care environment.”

“Medical students and residents with a deeper understanding of cost, financing, and medical economics, will be better equipped to provide more cost-effective care that will have a positive impact for patients and the health care system as a whole. We will continue working to ensure future physicians are ready on day one to meet the needs to patients in the modern health care environment,” McAneny stressed.