In July, a state commission of key legislators and members of Gov. Patrick’s administration recommended that both public and private insurers in the state move away from fee-for-service payment systems in order to discourage unnecessary care that may drive up healthcare costs.
According to the commission’s recommendations, primary care physicians, specialists and hospitals would create networks that would be responsible for a patient’s total well-being and would receive a flat monthly or annual fee, called a global payment for each patient. If the fee is more than what it costs to treat the patient, the networks would keep the difference as a profit. The global payments would then reward the healthcare networks for keeping a patient healthy, rather than treating them for individual ailments.
Although healthcare providers mostly support such changes, they argue that the most be implemented gradually and through voluntary pilot programs. The commission recommended that the changes be implemented within five years, according to the report.
Public hearings on the proposal are set to occur this week.
Read the Boston Globe’s report on Massachusetts’ proposed global payment systems.
