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Health Reform Options – Bundling Payer Payments Projected Cost Savings

According to American Medical News, out of eight options, RAND Health researchers concluded payment bundling is the most promising way to save money. Because Medicare already bundles hospital payments through the DRG system, hospital-only bundling would save only 0.1% over 10 years. But bundling payments to all payers for treating chronic diseases could save the system more than 5% over the decade.

Reform concept Projected range in national health spending change (2010-19)
Bundling payments -5.4% to -0.1%
Regulating hospital rates -2.0% to 0.0%
Implementing health information technology -1.5% to 0.8%
Launching disease management -1.3% to 1.0%
Creating medical homes -1.2% to 0.4%
Increasing retail clinics -0.6% to 0.0%
Expanding scope of practice -0.5% to -0.3%
Changing benefits design -0.3% to 0.2%

Note: “Expanding scope of practice” refers to nurse practitioners and physician assistants

Publication: AMNews, January 4, 2010.
Data Source: “Controlling U.S. Health Care Spending — Separating Promising from Unpromising Approaches,” New England Journal of Medicine, Nov. 26 (

January 5, 2010 - Posted by | Chronic conditions, Federal Government, healthcare, hospitals | , , , ,

1 Comment »

  1. RAND clearly sees no role for retail clinics in managing chronic conditions – though the clinics themselves do, and the applications are clear. That’s one of the perils of ‘objective-looking’ research output like this: it neatly obscures the researchers’ preconceptions, agendas, etc.

    Comment by inchoate but earnest | January 6, 2010 | Reply

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