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WASHINGTON, Feb 01, 2005 (United Press International via COMTEX) -- Ten large U.S. physician groups will participate in a demonstration project testing pay-for-performance reimbursement from Medicare.
Centers for Medicare and Medicaid Services Administrator Dr. Mark McClellan said participating physicians, who all volunteered for the demo project, will be paid based on the combination of the quality of care they provide and the total cost savings they achieve.
"I think it can potentially save significant amounts of money," McClellan said.
The standards of care used in the demo were developed by CMS in conjunction with the American Medical Association and the National Committee for Quality Assurance.
The physician groups will treat thousands of beneficiaries in fee-for-service or traditional Medicare. The current payment method uses a physician fee schedule -- doctors who participate in Medicare agree to accept a set rate and cannot bill patients should that payment be less than their usual charge.
President Bush, McClellan and others are critical of the fee schedule because it pays all physicians -- from the very best to the worst -- at the same rate.
Pay-for-performance agreements also are becoming more popular in the private health insurance industry.
Copyright 2005 by United Press International.
