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Medicare pilots pay-for-performance for physician groups

Physician Practice Advisor, February 1, 2005

The Centers for Medicare and Medicaid Services (CMS) announced Jan. 31 new initiatives to pay healthcare providers for the quality of the care they provide to seniors and people with a disability.

As another step in CMS' efforts to make higher payments for quality, 10 large physician groups across the United States will participate in the first pay-for-performance initiative for physicians under the Medicare program

During the three-year Physician Group Practice project, physician groups will continue to be paid on a fee-for-service basis. Physician groups will implement care management strategies designed to anticipate patient needs, prevent chronic disease complications and avoidable hospitalizations, and improve quality of care. Depending on how well these strategies work in improving quality and avoiding costly complications, physician groups will be eligible for performance payments.

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