MBA Students Contribute to Deloitte Health Solutions Brief

December 03, 2012

Jennifer Walker and Andrew Gostine, MBA students at Georgetown University’s McDonough School of Business, were contributing authors to a brief published through Deloitte’s Center for Health Solutions titled “Understanding the SGR: Analyzing the ‘Doc Fix’.”

The brief argues that the Sustainable Growth Rate (SGR) was created to provide access for patients, control federal health spending on Medicare Part B, and distribute costs across different medical specialties. However, federal health care expenditures have continuously grown over their targets in the past decade, rendering the SGR obsolete. A drastic cut to physician reimbursements, without implementing mechanisms to decrease health care costs, will result in physicians discontinuing medical services to Medicare beneficiaries.

The brief also reviews the historical events leading to the creation of the SGR, examines the SGR formula and problems with its use, discusses changes recommended by MedPAC, the Bowles-Simpson Commission, and the American Medical Association, provides cross-sector implications for stakeholders, and offers recommendations for the future.
-- Joan Lim