Dive Brief:
- A new program that rewards US doctors for keeping patients out of the hospital is paying off big for CareFirst BlueCross BlueShield.
- Last week, the company said cost savings rose sharply under the program, which emphasizes coordination among providers.
- The CareFirst initiative is capitalizing on the industry's trend of linking payment to quality.
Dive Insight:
Under what CareFirst is calling its "patient-centered medical home" program, cost savings in 2015 soared to $345 million, up from $130 million in 2013. The money is shared with physicians who meet specified goals, including reducing hospital admissions and readmissions.
CareFirst's growth in overall medical spending slowed to a rate of 2% last year; before the program began in 2011, spending was growing by an average of 7.5% annually. "To see sustained overall increases as low as we are now seeing is dramatic," CareFirst Chief Executive Officer Chet Burrell told Reuters.
Last year, physician groups that participated in the program and met their goals earned an average incentive of $41,000.