Global Payment Shows Promise As Consumers Wait For Savings

July 12, 2012

JULY 12, 2012 - BOSTON - Hospitals, doctors and insurers in Massachusetts are moving at a rapid pace into what are known as global payments, or sometimes global budgets. A study published online in the journal Health Affairs says there are signs that moving doctors into a global budget is good for patients, but the change isn’t saving consumers any money yet.

One in five patients in Massachusetts is now under some kind of global payment. That means that hospitals, or the group your doctor is in, negotiates a budget for all the patients in their practice. Doctors are paid based on the number of patients in their care, not based on how many patients they see in a day or the number of tests they order. This change is sweeping across Massachusetts and being tested in pockets around the country. Read more