RevCycle Intelligence November 5, 2020
Hospital referral regions with the highest Medicare spending rates in 2007 had the lowest growth rates through 2017, indicating the success of certain healthcare payment reforms.
Healthcare spending variation has been a major challenge for the industry, but a new study in Health Affairs has found that the gap between high- and low-cost regions is getting smaller based on Medicare spending.
The study conducted by researchers at Weill Cornell Medical College showed that the difference in Medicare price- and risk-adjusted per capita spending between hospital referral regions (HRRs) in the top decile and those in the bottom decile declined from $3,388 in 2007 to $2,916 in 2017— a reduction of $472, or 14 percent.
Reductions in Medicare spending variation observed...