I. IntroductionThe healthcare industry has recently seen some of the most challenging years in recent history when it comes to financing, including long-term debt financing and working capital financing. Then, just as capital markets were beginning to recover, the most comprehensive health care law since Medicare was enacted in 1965. On March 23, 2010, President Obama signed into law the Health Care Reform Act. most comprehensive healthcare system since the creation of Medicare. the Medicare program. This new health care reform known as The Patient Protection and Affordable Care Act (ACA), and subsequent related legislation, expands Medicare and Medicaid coverage and attempts to control health care costs and improve health care delivery systems. However, it also imposes significant requirements on healthcare delivery systems that will increase costs, such as; decrease some traditional sources of funds available to health care delivery systems; and increase the number of government-funded patients. These changes create financial strains and uncertainties that could adversely impact the financing available to the healthcare sector in a time it cannot afford.II. Healthcare reformA. The Reasons for Healthcare Reform Healthcare reform is necessary for the following reasons: • First, healthcare costs are skyrocketing. In 2011, the average cost for a family of four increased 7.3 percent to $19,393. This is almost double the cost of just nine years ago. By 2030, payroll taxes will cover only 38% of Medicare costs. The rest will contribute to the deficit of state benefits. • Second, healthcare reform is needed to improve the value of our healthcare, which is currently the lowest in the developed world. Chronic diseases cause 70% of all U....... middle of paper ...... or behavioral healthcare organizations that are comprehensive enough to make clinical decisions to support technologies like those mentioned above. In the approaching era of affordable healthcare, those who can clearly demonstrate the factual value of their product will be rare and in high demand. Given what we understand about the occurrence of behavioral health conditions and their influence on overall healthcare spending, healthcare providers have the exact expertise needed to illustrate significant value in a system that rewards performance. Unfortunately, such value improvements (i.e., outcomes divided by cost) are not incentivized in common fee for service payment models, which encourage quantity, not value. Changing this situation is one of the key concepts of healthcare reform and affordable care: moving from incentivizing volume to paying for benefits.