[and] while all projects are expected to produce cost savings beyond the three year period, some may not achieve net cost savings until after the initial three year period..”
Though certainly the data does not reflect a net savings for each project vs. what the initial funding amount was (click here for the full CMS report) and some opponents of the initiative question the efficacy and the aims.
Giving Away Dollars: Is the Issue about Healthcare Innovation or Job Creation?
Some have questioned whether the incentives are around Healthcare Innovation, or a governmental push for job creation. Indeed, those applicants who address job creation are favored during the submission phase for round two, but let’s take a look at the amount awarded and the jobs created. In fact, the announcement of the upcoming initiative was couched as part of Obama’s “Can’t Wait” campaign, and slated an emphasis on job creation, though round one of the Innovations in Healthcare grants produced less than stellar results, and even these are tentative based on estimates.
Funding Granted in Round One: ~$893 Million Dollars
Estimated Jobs Created Through Funded Projects: 2,723.82 (thousand)
Cost per created job: $327,947
The verdict is out on whether this push for federal funds marked toward improving efficacy, efficiency, and care in the newly shaped healthcare arena will prove beneficial, or, is just as one republican critic called it, a “$1 billion-dollar experiment”
We would love to hear what you think, send us an email at email@example.com or connect with us on Linked In!