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Healthcare Industry News > A new Medicare experiment delivered shocking results A new Medicare experiment delivered shocking resultsA new Medicare experiment delivered shocking results: doctors were able to save money and deliver higher quality care simultaneously. The experiment involved doctors at ten large group practices and was part of a four-year pilot program testing "pay for performance" approaches. The pilot program ends in March 2009.As part of the program, physicians will earn a yearly bonus if they can save Medicare at least 2% over what would have been spent on patients outside of the pilot program. Out of the ten practices participating, only two met that goal in 2006. They received a combined $7.3 million in bonuses. One of the practices - the Marshfield Clinic in central Wisconsin - credited their electronic medical record system as the reason for their success. Even without the savings, however, improvements were obvious in the pilot program. Visits to the emergency room decreased by 48%. Hospital admissions were down by 30%. These numbers are impressive given that the program focused on elderly patients suffering from chronic conditions, such as diabetes and high blood pressure. |
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