Lower healthcare costs, better outcomes with global payment | MassDevice.com On Call

July 17, 2012 by MassDevice staff

Massachusetts' pilot healthcare payment program cuts costs without cutting quality, Harvard study shows.

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MASSDEVICE ON CALL — A global healthcare payment model piloted in Massachusetts, largely considered a bellwether for national health system reform, was able to lower healthcare costs without sacrificing quality, according to a new study.

Called the Alternative Quality Contract, the alternative to the fee-for-service system is similar to the Affordable Care Act's Accountable Care Organizations, Kaiser Health News reported.

Researchers at Harvard Medical School found that health services providers who participated in the program spent an average of 3.3% less than non-participants, with significant savings from participants which were previously under a fee-for-service model.

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Researchers further noted that study participants improved patient outcomes in chronic care management, pediatric care and adult preventative care.

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