Essentia Health CEO Dr. David Herman testifies in front of U.S. Senate Subcommittee
Essentia Health CEO Dr. David Herman discussed the challenges facing rural health care with members of the United States Senate Committee on Finance this afternoon in Washington, D.C.
Dr. Herman highlighted Essentia’s leadership in providing value-based care to the patients we are privileged to serve, resulting in better patient outcomes and lower costs. The hearing, hosted by the Subcommittee on Health Care, was titled “Improving Health Care Access in Rural Communities: Obstacles and Opportunities.” You can view a recording of the hearing here.
A transcript of his prepared testimony is attached to this email.
In addition to value-based care, Dr. Herman touched on a variety of other topics while answering senators’ questions, including:
In response to a question from Senator Benjamin L. Cardin (D-Maryland) about specific programs that preserve access to health care in rural communities, Dr. Herman highlighted the benefit of bringing care to the patient whenever possible: “When you think about the economic costs that some of my colleagues have mentioned, about having your son or your daughter take a day off work to drive you from Ely, Minnesota, to Duluth, Minnesota, for a 20-minute visit and then drive back, that could be better served by a community paramedic, is certainly a challenge for the family and a waste of America’s economic vitality. So funding those programs where we can actually go to patients, whether it’s through telehealth or through the community paramedic program, can make a huge difference.”
Asked to describe what a successful value-based care program looks like, Dr. Herman responded: “It takes really three things: to know who your patients are, you know what they need and that you can get it to them before they really need it. That promotes health, wellness and well-being, and it also decreases the cost of care.” That prompted the following reply from Senator Sheldon Whitehouse (D-Rhode Island): “I would love to work with you going forward. So let’s stay on this.”
Sen. Cardin offered the following observation: “I really congratulate each of you for innovative ways to deal with rural health care in your service areas. … It’s encouraging to see what you are able to provide for your communities. I congratulate each one of you for your commitment to the health care of your communities.”
On workforce challenges, Dr. Herman said: “It will require a lot of innovations for us to not only treat people more efficiently and more effectively, but find ways to keep people well to reduce the burden on the health care system and more (importantly) to reduce their burden of illness.”
Senator Steve Daines (R-Montana) noted that Essentia has “had some of the most successes in Minnesota (regarding value-based care), but there are others that I know are interested in adopting similar approaches, as well.”
Dr. Herman discussed treating patients more holistically and involving community support: “If you’re living in a food desert and people are eating high-salt foods, the chances of them being hospitalized for congestive heart failure is very, very high. So rather than just taking a look at the patient’s path from illness to wellness, what’s the patient’s path to sustain themselves after they get that? And that’s building the community.”
On the number of rural hospitals that have closed and how best to support small-town hospitals, Dr. Herman discussed the value of an integrated health system. He said: “We believe that no rural hospital should have to stand by itself. And I think many of the ones that are closing are hospitals that have had to stand by themselves. So we have hospitals within our system that if they were not part of a system, they would not be able to stand by themselves.”
Asked about the accountable care organization (ACO) model, Dr. Herman responded: “We are strong proponents and strong practitioners of value-based care in the ACO model. … We believe it’s the best way to care for patients.”