This week, the Health Policy Commission met for their annual Cost Trend Hearing to address the challenges our industry faces in controlling health care costs. While many questions remain, some progress has been made, and insurers and providers alike were on hand to share the efforts that collectively they have taken to reduce costs.
For example, Partners HealthCare is one of a handful of providers to participate in new, innovative contract models with Blue Cross Blue Shield, which were announced on Monday. As The Boston Globe reported, the contracts “set budgets to care for patients and reward providers for keeping patients healthy and away from expensive hospital stays and procedures.” It’s an alternative payment model that gives added incentive for positive outcomes, rather than providing reimbursement for all services rendered.
“The single most promising approach to improve patient care and lower costs is to change the way we pay for care — to realign financial incentives to reward the quality, outcome and efficiency of the care patients, our members, receive,” Andrew Dreyfus, CEO of Blue Cross Blue Shield of Massachusetts, told the Commission.