MedPAC Recommends Single-Payment Pilot Program For Hospitals, Physicians

Main Category: Primary Care / General Practice
Also Included In: Public Health
Article Date: 14 Apr 2008 - 11:00 PST

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The Medicare Payment Advisory Commission on Wednesday voted to propose a pilot program to study the viability of a shared, single-payment system for hospitals and physicians treating the same patient for the same condition, CQ HealthBeat reports. The commission in June will formally present the proposal, along with other recommendations to improve Medicare and primary care, in a report to Congress. According to CQ HealthBeat, the commission made its recommendations "with an eye toward promoting efficiency and reducing hospital readmissions," which analysts say is typically a sign of ineffective care.

According to CQ HealthBeat, the commission hopes that by providing a single or bundled payment for a defined list of medical conditions, Medicare might be able to encourage hospitals and physicians to work more closely together. Doctors and hospitals could share the savings from more efficient treatment, a practice currently prohibited. Some medical device manufacturers have opposed bundled payments because they say it would lead hospitals and physicians to purchase less costly devices to increase their profits, which could result in lower-quality care (Reichard, CQ HealthBeat, 4/10).

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