Legislation introduced to advance healthcare system payment reforms based on ACO progress

Reps. Diane Black (R-Tenn.) and Peter Welch (D-Vt.) have introduced legislation aimed at improving the accountable care organization model by providing additional incentives based on quality of care and increasing collaboration between patients and physicians.

"By incentivizing providers to focus on improving healthcare outcomes instead of increasing the quantity of services provided, this legislation will help improve care coordination, increase efficiency, and most importantly, ensure the patient receives the best care possible," said Rep. Black, who has been a registered nurse for more than 40 years.

Among the provisions of The ACO Improvement Act of 2014 is one creating a pilot payment program that would disperse Medicare funds based on health outcomes. The Act is also intended to build a stronger patient-physician relationship by permitting patients to choose their primary care provider, including the option to choose a nurse practitioner or physician assistant in rural and underserved areas.

"If we are going to reduce healthcare costs and increase quality, the incentives built into the provider payment system need to be changed," said Rep. Welch. "In short, we need to reward value, not volume."

More articles on healthcare industry legislation:

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5 recent legislative developments affecting the healthcare industry
Many Medicare fraud issues addressed in draft bill

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