Massachusetts Considers Drastic Changes to Physician Reimbursement

A Massachusetts state commission plans to recommend that healthcare insurers reimburse physicians and hospitals with a set payment that is intended to cover the care of each patient for the entire year, according to a report by the Boston Globe.

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This system would drastically change the state’s current fee-for-service system. Proponents of the plan claim that this type of reimbursement structure would restrain health spending and result in better coordinated care.

The commission still must work out many details of the plan, such as how the payments will be divided among healthcare providers and would need to seek approval from CMS for Medicare patients if the changes are approved.

Under the proposal, annual global payments would be higher for very ill patients or those at risk of needing high-cost treatments.

Read the Boston Globe’s report about the Massachusetts physician reimbursement changes.

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