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News Release

FOR IMMEDIATE RELEASE
Friday, Dec. 1, 2006

Contact: HHS Press Office
(202) 690-6343

Virginia Commits to Cornerstones of Better Health at Lower Cost

The State of Virginia today joined the nationwide initiative on value-driven health care, joining major private employers who have expressed support since the effort was launched by HHS Secretary Mike Leavitt last month.

Following Secretary Leavitt�s call to the business community on November 17, a number of major companies have made their commitments to the initiative. Virginia became one of the first states to commit after Secretary Leavitt�s appeal to public sector employers Nov. 28. In addition, several states expressed support for the goals of the initiative earlier this year.

�At this point, aggressive efforts are underway to invite all of America�s public and private sector employers to join the federal government in committing to four cornerstone actions to achieve better health care and lower health costs,� Secretary Leavitt said. �Employers can help their employees identify and select high quality health care at competitive prices. And when a substantial number of employers commit to these improvements, our health care system as a whole will improve for all Americans.�

Secretary Leavitt made these remarks as Virginia Gov. Timothy M. Kaine signed an executive order committing the state to the four cornerstone actions in the health insurance it provides to state employees. The Medical Society of Virginia, Virginia Hospital and Healthcare Association and companies in attendance also expressed support for today�s action.

The four �cornerstone� actions are: public reporting of the quality of care delivered by health care providers; public reporting of the price of care; commitment to health information technology standards; and commitment to use incentives for high quality care, competitive costs and consumer choice.

�Health care transparency provides consumers with information and creates an incentive to choose health care providers based on value,� Governor Kaine said. �It will help Virginians spend their health care dollars wisely when they know their options in advance, know the quality of hospitals in their area and know what procedures will cost. This transparency also will further motivate our health care providers to provide quality care at competitive prices.�

The federal government was the first to embrace the four cornerstone commitments, with President Bush�s Aug. 22 Executive Order. This action committed federal health programs (including Medicare, Veterans Affairs, Indian Health Service and the Federal Employees Health Benefits program) to the �cornerstone� actions.

Secretary Leavitt has expressed the goal of achieving commitments by next spring from enough private and public employers to represent 60 percent of all insured Americans.

�With commitment to the cornerstones on behalf of 60 percent of insured Americans, we will reach a tipping point that will bring about meaningful measurement and reporting of quality of care, usable cost reporting, and real choice for consumers based on this quality and cost information,� Secretary Leavitt said.

A key part of the initiative for value-driven health care is the adoption of consistent and reliable standards for quality and cost measurement to enable consumers, health providers and payers alike to compare the quality and value of services. Secretary Leavitt said that the initiative depends on collaboration between stakeholders in the employer, health care provider and insurer communities. He also noted that development of quality measures is being carried out with the leadership of the nation�s leading health care provider organizations.

�This initiative is about getting quality care, and the quality measures that are created will be crucial for achieving better care at lower costs for the people of Virginia and all Americans,� Secretary Leavitt said.

For more information on this initiative, go to www.hhs.gov/transparency.

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Note: All HHS press releases, fact sheets and other press materials are available at http://www.hhs.gov/news.

Last revised: December 1, 2006

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