Medical Economics Pulse, Feb. 26, 2025: Misconceptions about primary care spending, FDA clears new diabetes tech, challenges of performance-based pay

Hello and welcome to Medical Economics Pulse, a quick-hitting news podcast that keeps busy physicians in the know. We offer concise updates on the most important developments affecting your practice, your bottom line, and the broader health care landscape, delivered to you by our editorial team at Medical Economics.

It’s February 26, 2025, and here are today’s headlines:

First off, a new study reveals that the public vastly overestimates how much of our health care dollars go to primary care. While most Americans believe primary care accounts for more than 50% of total health care spending, the reality is closer to 5%. This misconception may be a key reason why policymakers and the public fail to push for more primary care investment. For physicians, this underscores the need for greater advocacy. Research consistently shows that strong primary care systems improve outcomes and reduce costs. Yet, without increased funding and structural support, primary care continues to be undervalued and underfunded.

Next up, in a significant step forward for diabetes management, the FDA has cleared Tandem Diabetes Care’s Control-IQ+ technology for use in Type 2 diabetes. Previously approved for Type 1 diabetes, this closed-loop system automates insulin delivery, offering an adaptive approach to glucose management. For physicians treating patients with Type 2 diabetes, this technology represents a major advancement. However, accessibility and insurance coverage remain key concerns, so staying updated on payer policies and patient eligibility is crucial.

Finally, a new study links performance-based reimbursement models to increased administrative burden and lower perceived quality of care. While these models aim to improve health care outcomes, physicians report added stress from excessive documentation and pressure to meet quality metrics. The balance between incentivizing high-quality care and reducing physician burnout remains a challenge. With ongoing workforce shortages and rising burnout rates, reducing administrative tasks and addressing moral distress related to performance-based reimbursement could be key to improving physician retention and patient outcomes.

And that’s it for today’s Medical Economics Pulse. Be sure to subscribe for new episodes, and read more health business news and expert content at MedicalEconomics.com. Be sure to subscribe to our premiere podcast, “Off the Chart, A Business of Medicine Podcast,” which features lively and informative conversations with health care experts, opinion leaders, and practicing physicians about the challenges facing doctors and medical practices.

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