Deep Creek Lake Real Estate Blog - Jay Ferguson

Deep Creek Lake Real Estate Blog - Jay Ferguson
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Friday, May 20, 2011

Hospitals to test out new billing approach

Under experimental system, charges based on illness, success of treatment rather than services provided
by Margie Hyslop | Staff Writer

As many as half of the 46 primary care hospitals in the state are moving toward switching by July from the current system, in which they simply are paid for each service, to where they are paid based on the patient's illness and how effectively it is treated.

"The concept is to put a limit on a bundle of services that is focused on the health of the patient," said Robert Murray, executive director of the Health Services Cost Review Commission, which approved the three-year experiment in January.

Murray said the new hospital payment system is a switch from reimbursing hospitals for every patient admission or procedure to paying hospitals a predetermined amount to treat a patient and letting hospitals keep the savings if they treat patients effectively so they do not have to be readmitted.

Read the full article here.

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