By Deborah Leyva

Link: Michigan’s Fee-for-Value Physician Incentive Program Reduces Spending and Improves Quality in Primary Care – The Commonwealth Fund.

With the recent announcement from HHS regarding “Better, Smarter, Healthier”  and its goals and timeline for shifting Medicare reimbursements from volume to value, Michigan’s Fee-for-Value initiative is reported to have reduced spending and improved quality of primary care. This is a big step to break-down the brick wall between fee-for-service and value-based accountable care reimbursement models.

The article finds that total spending by practices decreased $4 per member, per month in the second year, although spending increased in the first year. Adult savings were achieved through cost reductions in outpatient facility use.

Published by the Commonwealth Fund at the above link, the study used BCBS of Michigan’s utilization and spending data and compared pre- and post- intervention performance between those who participated in the Incentive Program and those who did not. Data relied on HEDIS process measures for preventive and evidence-based care.

This study demonstrates that the move from fee-for-service to a value-based incentive program has the possibility to reduce costs while maintaining high-quality patient care.


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