Purchasing health care: an opportunity for a public-private partnership.

By recommending that the federal government take a leadership role in driving quality improvement in the U.S. health care system, the Institute of Medicine has taken a bold step, one that signals a significant policy shift. Through regulations and payments, government incentives have a profound effect on the practices of hospitals, clinicians, and other institutions. Private-sector employers sponsor coverage for 165 million people, and they will want a substantial voice in government strategies and actions. This paper recommends that the two sectors formally develop a strategic partnership, mediated through two powerful advisory boards, one at the level of the HHS secretary and the other at the level of the CMS administrator.