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Health Care: You Get What You Pay For

Editor’s note: It has been long recognized that in health care (as elsewhere) you get what you pay for. In health care if you pay have a fee for service model you get services. If you have more physicians or MRIs per capita you get more physician services or MRIs performed per capita.

We need to move to more of a hybrid model that pays for care. In the following story, one locale is testing a new model based on fee for care.

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Minnesota groups test new health care payment model
Minnesota’s second-largest insurer, Medica, and the local nonprofit Fairview Health Services are testing a reimbursement model that pays providers a fixed rate for patient care instead of the usual fee-for-service payment structure. Fairview’s challenge is to improve care and lower costs in the long run, which will mean higher payments, while Medica is investing in the project to help change the system of care delivery. National Public Radio (text and audio)

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September 3, 2009 - Posted by | Creative disruption, healthcare, Reimbursement | ,

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