Practice Notes — Rewarding physicians for reducing spending

Description

Abstract: One of the most talked-about new ideas in health care is rewarding providers for reducing medical spending by giving them a share of the net cost savings. The concept is currently being tested by many payor and provider organizations across the United States. The early results are so promising that providers — including physicians — may see contracts offering this arrangement in the near future. This article discusses the characteristics of the demonstration projects testing the new concept.