Henry Ford Health CEO Calls for 'Permanent Reset' in Healthcare Economics

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Henry Ford Health CEO Bob Riney believes the high cost of healthcare in the U.S. is not just a pricing problem, but rather reflects deeper structural flaws in the current healthcare financing system that require a 'permanent reset.' Riney argues that state-by-state variation in Medicare and Medicaid rates, differences between growth and aging markets, and rural versus urban dynamics account for significant performance variation, and that policymakers' short-term 'fixes or patches' have not helped create a lasting solution. Riney says Henry Ford Health provides nearly $800 million annually in uncompensated care, which shapes their investment decisions in prevention and community-based services. Looking ahead, Riney says measurable progress over the next five years should focus on improving chronic disease management, integrating mental health into primary care, and providing more organized care for the elderly population to reduce costly hospital readmissions.

Why it matters

Healthcare costs continue to rise, ranking as Americans' top economic concern. Riney's comments highlight the need for a fundamental redesign of the healthcare financing system to address structural flaws and inequities, rather than relying on short-term patches. As a major health system provider, Henry Ford Health's experience with uncompensated care underscores the broader gaps in coverage and access that impact investment in prevention and community-based services.

The details

Riney says the healthcare financing system has been 'uneven and convoluted for decades' and does not serve the country well. He argues that the variation in Medicare and Medicaid rates, differences between growth and aging markets, and rural versus urban dynamics account for significant performance variation. Policymakers have responded with 'fixes or patches' like premium reimbursement for hospital outpatient departments, the 340B drug pricing program, and critical access payments, but Riney says these have been 'short-term stabilizers' that have not helped create a 'permanent reset' for healthcare economics.

• In 2024, national health spending climbed 7.2% to $5.3 trillion, or 18% of GDP, according to CMS.

What they’re saying

What’s next

Riney says policymakers should get all healthcare stakeholders to the table and 'hold them financially harmless' so they are motivated to participate in a fundamental redesign of the healthcare financing system, rather than protecting their own interests. He believes value-based care models that have a long-term commitment can help drive value and decrease healthcare cost inflation.