THE PIONEER BLOG

Video: But Will The Cost-Cutting Bills Really Save Money?

The debate on Beacon Hill is heating up on payment reform legislation, but the public discourse has revolved primarily around dueling press releases.  There has been little discussion exploring the real challenges of fundamentally changing 18 percent of the Massachusetts economy with new payment and delivery methodologies. With 20 percent of patients accounting for 80 percent of health care costs, is this the right approach? Will it save money and engage consumers? CommonWealth magazine hosted a recent web discussion to cover a few of these topics. WBUR’s CommonHealth blog recently shared the video as well.

Our Final Thoughts on The 38 Studios Meltdown

First and foremost, this is an economic disaster for Rhode Island and a personal tragedy for the individuals and their families affected. Rhode Island is in much worse shape, employment-wise, than Massachusetts, ranking 50th (out of 51) in unemployment rate at 11.2%. Massachusetts is 14th at 6.3%. And this is a big layoff for that state, with 288 employees laid off in-state and another 91 laid off (primarily in Maryland). Over the past 10 years, Rhode Island has averaged 63 “mass layoff” events per year, at an average of 134 employees laid off per event. So 38 Studios demise is roughly twice that. One really puzzling aspect of this for me is how dramatically the company missed. This is the […]

Perspectives on the Romney education plan

A round-up of various perspectives on Governor Romney’s education policy announcement yesterday. I’ll post later on today to help you navigate through the noise, but it is always good to have a broad set of perspectives when big announcements are made. Here is the full education “white paper” entitled A Chance for Every Child and a list of the Romney education team. Here is a transcript of Governor Romney’s speech before the Latino Coalition’s Annual Economic Summit in Washington, D.C. From today’s Boston Globe, here is Matt Viser’s article. The Wall Street Journal‘s video take below: Trip Gabriel’s take in the New York Times. And Paul West of the LA Times. Crossposted at Boston.com’s Rock the Schoolhouse. Follow me on […]

Massachusetts’ Jobs-Unfriendly Regulatory Environment

I know this can seem like a talking point, but there’s some new data to back up the claim. The Kaufmann Foundation and Thumbtack.com have done a survey of small businesses to gauge “small business friendliness”. Massachusetts doesn’t fare so well — getting a D overall. We do well on ‘Networking Programs” but most other categories, like Regulation, Zoning, etc, are terrible. The data is based on a limited number of self-selected responses but its an interesting approach that indicates the importance of licensing and regulation on business creation. One of the most important ways to create new jobs (which we need) is to get new businesses started. So, it would make sense to lower the barriers that prevent people […]

The wrong lesson on national standards

Dear David, Congratulations on becoming the new head of the College Board. I know, as a Founding Father of the national standards effort, you may have read certain things I have written that you do not agree with. While I haven’t met you personally yet, I look forward to it. I have heard universally that you are a smart guy and reputed by all to be a nice person. I hope you and the Coleman family are well, and I am writing to say I’m sorry. In addition to writing about school innovations, charter schools, vocational technical schools, school choice, accountability to results, and teacher quality issues, I’ve written with some frequency about academic standards and curricula—and especially recently about […]

Decision Time is Here For Extended Learning in Massachusetts

The Education Reform Act of 1993 was a complex piece of legislation but its principal components are four: High academic standards for K-12 schools; Accountability through the MCAS test and a state office that performs audits on schools and districts; Improved teacher quality through rigorous testing of teacher’s mastery of the content in the state’s academic standards; and Expanded public school choices for parents through charter schools. The subsequent history of education reform in Massachusetts has been an ebb and flow of implementation of these elements. It took until 1996 for the state to truly embark on any of the first three reforms listed above (and it took a long time and lots of public debate to move them ahead–one […]

Borne Back Ceaselessly Into the Past?

The Globe’s Adrian Walker has been all over Roxbury Community College this week, dinging them for failing to properly deliver financial aid to their students, to take advantage of the business community’s offer to start a job training program (which eventually ended up at Bunker Hill Community College) and to properly report its crime statistics. These revelations are a shame, given the leadership role that RCC could play in the revitalization of the area. But for long time observers, RCC has long been held to a much lower standard than other public entities. Back when I was at Administration and Finance in the mid-2000s, it was a running joke in the budget office about when the last time RCC had […]

Is Maine Leading the Way on Health Care?

The Commonwealth is currently debating greater government intervention in our health care system with payment reform legislation. Maine is moving in the opposite direction. This press release was just put out by the think tank Maine Heritage Policy Center. Unprecedented: Rates for health insurance plans to drop as much as 60% PORTLAND – Rates for individual health care plans in Maine will drop as much as 60% in July as a result of health reform law PL 90, the free-market health insurance reform bill passed by the legislature last year. The Maine Heritage Policy Center was a key advocate of the bill. Information contained in Anthem’s most recent rate proposal indicates substantial positive results from the law’s passage. After years […]

The Struggles of 38 Studios

The State of Rhode Island is working hard, very hard, to make sure that Curt Schilling’s 38 Studios remains a going concern. It appears the state of Rhode Island is on the hook for $50m+ if 38 Studios defaults on its loan that is backstopped by a state guarantee. And let me be clear — no one wants the company to fail. Back when the deal initially went down, I said that Curt Schilling has every right to find the most lucrative deal for his company but that the state of Rhode Island was making a mistake. What the state did was make a big, concentrated, and multi-layered bet. Big — $75m big. Concentrated — $75m of a $125m initiative […]

Will Your Next Cancer Treatment Be In New Hampshire?

New Hampshire lawmakers have a long history of jeering Massachusetts over taxes, but it looks like they have moved to a much bigger sacred cow, health care. The Boston Globe ($)recently reported that in New Hampshire there is a bill, “eliminating a state review process and exempting it [specialty destination hospitals] from a tax that New Hampshire’s nonprofit hospitals pay.” By contrast, the two recently proposed payment reform bills on Beacon Hill move in the opposite direction. The bills “reform” the determination of need process to make it more government-centered and will severely limit any future expansion of similar facilities in the Commonwealth. Massachusetts policymakers should be watching our borders closely as they aim to significantly alter our local payment […]

Health Care Reform in Record Time

If you blinked over the past seven days, you might have missed the rollout of two major pieces of legislation that will dramatically restructure health care delivery here in Massachusetts. While the Governor put his proposal out over a year ago, it has taken the Legislature a long time to take up the issue. Suddenly, everyone is in a rush. The House rushed their bill out the door at an oddly-timed late Friday afternoon press conference on Friday, May 4th. They plan on debating the bill in a month or so. The Senate is in even a bigger rush — their bill came out on Wednesday, May 9th. Amendments are due by 5 PM on Friday. And debate begins on […]

Red or Blue Pill for Payment Reform? Both Won’t Work

Are the House and Senate giving us a false choice for how to control health care costs in Massachusetts? Aren’t there other options? A few major themes have emerged from the two payment reform proposals and highlight the fact that they fail to align incentives for patients to be more involved in the purchase of their health insurance and their health care. For example, even with full transparency of cost and quality (which is a huge lift on its own) for many patients, high-cost still correlates with higher quality in medicine. A recent report from Attorney General Coakley proved this theory wrong, but simply providing patients with cost data without placing the right incentives in their health plan to choose […]

Massachusetts’ Katrina Moment

In a previous job, I spent a lot of time in major Massachusetts cities outside of Boston. Cities like New Bedford and Fall River, with their stunning coastal views, and cities at the edge of Boston with so much potential like Lynn and Brockton, always intrigued me. But I have to admit to two favorites–Springfield and Lawrence. They are indeed among the most troubled, but they are both architecturally unique, with strong neighborhoods and muscular industrial histories. Whenever in Lawrence, I would try to make it to Saint Anthony’s Maronite Church or eat at Cafe Azteca. The smells in each place are enough to keep you going for days. A sensation similar to the “beignet haze” you get walking within […]

Manufacturing Still Matters

Way back in 2006, Pioneer was interested in manufacturing. Our Measuring Up study on the cost of doing business in Massachusetts showed that manufacturing was still an important employer in the state and, importantly, was a source of good wages in the places it was located. More recently, we’ve been intrigued by the possibility of a resurgence in the sector based on rising costs at some of our off-shore competitors. Now, Brookings Institution has done a comprehensive study of manufacturing jobs across the country. In our major metropolitan areas (Boston, Springfield, Worcester) , manufacturing jobs account for 7% to 11% of total jobs. There’s been a roughly 30% decline in the number of these jobs over the last decade, but […]