tci Part B Insider - 2005 Issue 21

REIMBURSEMENT: Should Your Physicians Receive Rewards For Decreasing Hospital Spending?

'Pay For Performance' incompatible with physician pay limitsWhen physicians do a good job taking care of patients, Medicare spends less on hospital care - but doctors never see any of those savings.That could change if the Practicing Physicians Advisory Council has its way. PPAC passed a resolution at its May 23 meeting calling on Medicare to transfer savings on the hospital side due to physician efficiency over to the physician side.This would be tricky to determine, but Medicare could do it by choosing an indicator and measuring it against a large enough control group, says Albuquerque, NM...

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