BCBS of Massachusetts Reports Success of New Fixed Payments for Physicians

Blue Cross Blue Shield of Massachusetts reports its new system of paying physicians a fixed amount per patient has improved quality of care during the first year, according to a Boston Globe report.

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According to BCBS of Massachusetts, 6,300 physicians paid under the new method in 2009 improved patient care faster than the other 14,200 physicians in the insurer’s network. BCBS measured quality using various criteria, including the percentage of diabetics whose glucose, blood pressure and cholesterol levels were kept under control.

Participating physicians are now paid a monthly fee per patient, which is adjusted depending on the patient’s health. The fee is not affected by how many tests, appointments or procedures the physician orders for the patient, and physicians can earn bonuses for improving patient care.

According to Blue Cross CEO Andrew Dreyfus, physicians with the contract should halve increases in healthcare spending within five years.

Read the Boston Globe report on Blue Cross Blue Shield of Massachusetts.

Read more on physician payment systems:

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