CMS Administrator Seema Verma called on hospitals to get on board with the Trump administration’s transparency and value-based payment policies. She mentioned that they could face tougher time if they resist.

Verma said that the status-quo is unacceptable as most Americans are fed up with high healthcare costs and surprise billing. These issues have called upon the government to involve more in healthcare, which would conclusively harm hospitals’ bottom lines and increase regulatory burden.

At the American Hospital Association meeting she presented a tough choice to hospitals to either embrace the Trump administration’s competition and value-based approach to healthcare reform or prepare for dwindling free-for-service revenues and Medicare for All or a public option.

Verma said the choice was clear, either choose Medicare for all or a public option, doubling down on government and a one-size-fits-all, socialist approach, with government price setting or move to a system of competition and value.

She also promised to grant providers flexibility they need to smoothly transition to value-based payments. But providers have fears about bearing the cost of the $2.9 billion in additional savings the initiative is projected to generate over the next decade.

She tried to convince the audience that the Trump administration is a trustworthy partner for healthcare reforms. It has worked on the recovery audit contractor program, regulatory burden and Hospital Compare quality ratings.

It is believed that value-based care solutions would be beneficial for patients and providers too.

Verma said value-based payment under the Trump administration is the future of healthcare. So, hospitals should make no mistake. If business models are focused merely on increasing volume rather than improving health outcomes, cutting waste and coordinating care, you will not succeed in the new paradigm.