A physician reimbursement model that functions under the traditional fee-for-service model but includes quality and spending incentives can improve quality and lower costs in primary care, according to a recent study published in Health Affairs.
This strategy, called fee-for-value, was the subject of a study that examined Blue Cross Blue Shield of Michigan's Physician Group Incentive Program, which offers physicians financial incentives to participate in 25 available initiatives to improve care delivery and health outcomes. It also included increased reimbursements for practices that maintained a patient-centered medical home designation.
The study examined the program's affect on quality and costs in more than 11,000 practices from 2008 to 2011 and found the average amount spent per month per adult patient in the program was about $3.53 less than that of a non-participating practice. For pediatric patients, participating providers spent $5.44 less.
Participating providers also reported the same or improved results on 11 of 14 quality measures.
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