Tuesday, October 18, 2011

How do you align the incentives of providers with the goals of payers?

Massachusetts Democrats are...
...working toward a plan that would encourage flat “global payments” to networks of providers for keeping patients well, replacing the fee-for-service system that creates incentives for excessive care by paying for each visit and procedure.
How long before the patients revolt?

1 comment:

  1. Since the incentive for the care giver is maximizing profit, my guess is that the quality is going to go down once they move the service to a flat payment. It will take some time to adjust to the new scheme, but once they do, quality will decrease and people will be complaining, especially old people who go often to see doctors.