Boston Hospital Agrees to Control Charges, Payors Agree to Finance Pilot Studies

In a pioneering arrangement with its major payors, Children’s Hospital Boston will limit fee increases while payors will fund pilot programs to develop ways to provide better care at lower costs, according to a report by the Boston Globe.

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For 2010, the hospital has agreed to curb fee increases for physician visits, tests, and surgical procedures by 50-75 percent.

In return, Blue Cross-Blue Shield, Harvard Pilgrim Health Care, Tufts Health Plan and the state’s Medicaid program will contribute about $10 million of savings derived from the fee curbs for programs that:

  • give doctors immediate feedback on the success of treatments;
  • explore ways to expand the range of primary care physicians’ services without having to refer patients to specialists; and
  • create new payment models for pediatric care that could be used by Massachusetts lawmakers a they consider revamping state payments.

Read the Boston Globe’s report on Children’s Hospital’s arrangement with payors.

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