Keckley Report November 20, 2017
Friday at the annual meeting of the Council of Medical Specialty Societies meeting in Washington, I was asked if alternative payment models are likely to be around in coming years. It’s a legitimate question many organizations are asking.
Background
The use of alternative payment models to rein in health spending by improving care coordination is not new. Two decades ago, they were called “pay for performance” (aka P4P) programs, prompted by annual health cost increases of 7% and mixed results from managed care efforts in the 90’s. Most P4P programs targeted hospitals; a few targeted physicians and all resulted in a flurry of activity to create physician-hospital organizations (PHO), independent practitioner associations (IPA) and other weird arrangements (OWA) so providers...