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How to reduce health care costs through innovation and competition

  1. Health Care

How to reduce health care costs through innovation and competition

How empowering innovation and individuals can create affordable, high-quality health care for everyone

A family sits with their child on a couch in a hospital clinic room.

Rising health care costs are among the most significant challenges facing individuals, families, and businesses in the United States, often limiting access to care and straining the economy. However, embracing innovative health care solutions and fostering competitive markets creates a more affordable and effective system. 

A bottom-up approach that prioritizes better outcomes and lower costs is key. By encouraging creative destruction, empowering communities, and respecting patients’ dignity, health care can evolve to meet individual and community needs.  

Innovations in technology, personalized care options, price transparency, and supportive policies are driving the transformation toward a system that works for everyone.

1. Leveraging technology to enhance efficiency with AI and telemedicine

Innovation through technology is driving transformative change in health care. Tools like artificial intelligence (AI) and telemedicine enable better outcomes at lower costs while respecting patient autonomy. 

AI is transforming health care by freeing doctors and nurses to focus on patients. By analyzing vast medical data, AI improves diagnoses, lowers costs, and streamlines paperwork — reducing admin burdens so providers can deliver the personalized care every patient deserves. 

Telemedicine removes physical barriers to care, enabling patients to consult providers remotely — an approach that’s vital for underserved areas with limited access. Expanding and lifting outdated restrictions can create a more efficient health care system that meets diverse needs. 

Discover how Dr. Trina Clayeux’s community-based mental health approach trains wellness ambassadors and bridges the gap for millions in need.

2. Community-based mental health support  

Mental health challenges require solutions that prioritize human dignity and the knowledge of those closest to the problem. Peer-supported models empower individuals within their communities to address mental health issues, promoting mutual benefit.  

Local organizations can address specific health care needs within communities, providing targeted services that may be more effective and less costly than broader, one-size-fits-all approaches. This bottom-up approach leverages local knowledge to address mental health challenges in personalized and cost-efficient ways.  

Give an Hour trains thousands of peer-based mental health ambassadors, offering an innovative solution that reduces the reliance on overburdened therapists while lowering health care costs. By empowering communities to address mental health needs, this model fosters stronger connections and increases access to affordable care, particularly in underserved areas. 

3. Encouraging competition through policy reform

Outdated regulations like Certificate of Need (CON) laws stifle competition, limit innovation, and keep health care costs high. Reforming these policies removes artificial barriers, allowing new providers to enter the market and compete to serve patients better.  

Increased competition leads to lower costs, improved quality, and more choices for patients. A Personal Option in health care — where individuals have greater control over their choices — thrives in a system driven by bottom-up solutions and openness. By eliminating unnecessary restrictions and offering more choice and control, patients and entrepreneurs alike can experience innovation, expanded access, and a health care system that works for everyone.

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4. Enhancing price transparency

Patients are empowered when they have access to clear, actionable pricing information. When people can see and compare costs, they gain more choice and control over their care, rather than relying on bureaucratic systems that limit decision-making. 

A system that prioritizes openness and competition ensures that innovation thrives, costs decrease, and care improves. 

The Health Care Reformers Academy trains next-generation leaders to advance health care reforms. Participants have already driven impactful changes, fostering competition and accessibility. The Academy plans to grow, training more advocates to create a transparent, patient-focused health care system.

5. Personalized health care

The health care market is evolving, driven by bottom-up solutions that expand choice and competition — from direct care to direct pharmacy services. But real reform means embracing dignity and self-actualization, empowering patients with more control over their health care dollars so they can choose the personalized care that best fits their unique needs. 

A Personal Option ensures funding flows directly to patients rather than bureaucracies, enabling mutual benefit through value-driven decisions that prioritize quality, affordability, and better outcomes. 

A brighter future for health care with innovation 

Systemic health care reform starts by funding patients, not bureaucracies, which unleashes innovation, expands competition, and puts people in control. Personalized care means individuals decide what’s best for their health, with more choice, transparency, and access to care that meets their needs. 

By advancing patient-driven solutions like direct care, transparent pricing, and value-based models, costs can be lowered while improving outcomes.  

These reforms aren’t just aspirational — they’re happening right now. Scaling these bottom-up solutions, reducing regulatory red tape, and supporting community-driven solutions builds a health care system that works for everyone. 

Read more about innovation in health care  

  • These five mental health nonprofits are redefining health care by meeting people where they are with transformative, community-based solutions. 

Learn more about Stand Together’s health care efforts and explore ways you can partner with us.

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