Twelve New Jersey Hospitals and Their Physicians Will Test Medicare Incentive System

Twelve New Jersey hospitals and their participating physicians will test a Medicare incentive method called gainsharing in which physicians earn financial incentives by helping hospitals to lower costs, according to a release by the New Jersey Hospital Association.

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The hospitals’ efficiency strategies could include ensuring that ORs start on time to prevent back-ups and encouraging physicians to write discharge orders in the morning so patients can be released in a timely manner.

The program will be strictly voluntary for physicians and will adjust data to account for those with more seriously ill patients.

CMS will be evaluating the three-year project to determine whether it should be replicated nationwide.

Read the New Jersey Hospital Association’s release on the New Jersey gainsharing pilot.

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