Harvard study: Mass. payment reform plan shows promise

 A new Commonwealth Fund-sponsored study has concluded that the first year of a five-year plan to implement a global payment system in Massachusetts has shown promise for lowering medical spending and improving quality of patient care (Source: “Health Care Spending and Quality in Year 1 of the Alternative Quality Contract,” Commonwealth Fund, July 13, 2011).

Conducted by researchers from Harvard University and published online by the New England Journal of Medicine, the study examines the impact on Massachusetts’ five-year Alternative Quality Contract (AQC), which is being administered by Blue Cross Blue Shield. The system replaces traditional fee-for-service payments with a system of comprehensive, global payments for all aspects of patient care.

“According to the researchers, the AQC caused changes in physician referral patterns—ACQ patients were referred to providers that charged lower fees. The new payment model was also associated with improvements in the quality of adult chronic care and pediatric care,” the Commonwealth Fund reported, citing the incentives in the plan as the likely reason for the improvements.

The Health Policy Institute of Ohio has recently adopted a three-year strategic plan that identifies four strategic objectives for informing health policy development. One of those objectives is aligning public and private payments with better health quality outcomes for all Ohioans. In the coming months, HPIO will be gathering input from a diverse collection of stakeholders to determine how Ohio can explore payment reform strategies.