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Successes of Michigan’s fee-for-value incentives

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The Commonwealth Fund reports on Michigan’s fee-for-value successes. It says:

”An evaluation of one of the nation’s largest ‘fee-for-value’ initiatives demonstrates that physicians can control costs while improving their performance under a traditional fee-for-service arrangement. Primary care doctors who were offered financial incentives to form patient-centered medical homes and engage in quality improvement activities reduced spending by 1.1 percent on a per-member per-month basis compared with a control group. Performance on measures of preventive care and chronic disease management also improved. Spending increased initially, but declined by the program’s second year of participation.”


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