Partners HealthCare and Tufts Health Plan, two behemoth-sized healthcare organizations in the Boston area, have reached a new contract agreement expected to reduce healthcare spending by more than $105 million over the next four years, according to a Partners news release.
Partners, which includes Massachusetts General Hospital and Brigham and Women's Hospital, and Tufts agreed to reduce Partners' reimbursements by a total of $45 million over 2012 and 2013, according to the release. Over the duration of the contract, this will lead to roughly $105 million in savings.
Rate increases during the contract period will be in line with general inflation, which is currently between 2 and 3 percent.
Partners will also enter Tufts' Coordinated Care Model, which is a global payment system in which Partners will be required to meet or exceed quality measures for patients and keep costs down.
Partners, which includes Massachusetts General Hospital and Brigham and Women's Hospital, and Tufts agreed to reduce Partners' reimbursements by a total of $45 million over 2012 and 2013, according to the release. Over the duration of the contract, this will lead to roughly $105 million in savings.
Rate increases during the contract period will be in line with general inflation, which is currently between 2 and 3 percent.
Partners will also enter Tufts' Coordinated Care Model, which is a global payment system in which Partners will be required to meet or exceed quality measures for patients and keep costs down.
Related Articles on Hospitals and Health Plans:
California Orders Anthem Blue Cross to Pay Back Hospitals, Physicians
Physician Contracts Disclosed in West Penn, Highmark Deal
Thomas Health System Medicare Members Stay In-Network After Humana Reverses Decision