Massachusetts Health Leaders: Cost Containment Efforts Making Progress

Massachusetts healthcare providers have told state officials that they have made progress in containing costs in order to comply with a new state law that sets a target limit of 3.6 percent for medical spending in 2013, according to a report from The Boston Globe.

The providers spoke yesterday at the first of two public hearings — the second of which was scheduled for this morning — held by the Massachusetts Health Policy Commission to discuss care cost trends.

Partners HealthCare CEO Gary Gottlieb, MD, testified that his organization has renegotiated its contracts with larger health insurers to get them to accept lower prices than originally promised. Additionally, Partners — the state's largest hospital and physician organization — is also working to turn primary care practices into patient-centered medical homes, which aim to improve the health of patients with complex conditions in order to reduce hospital and emergency room visits, according to the report.

However, healthcare leaders also told state officials employer health plans that give workers more freedom to choose physicians and hospitals could drive up costs, since the plans make it more difficult for providers to track patients and coordinate care. Health insurers and providers said global payments plans that give hospitals and physicians a budget to care for groups of patients make it easier to control costs, according to the report.

The state's Center for Health Information and Analysis won't know whether Massachusetts has met its healthcare spending growth benchmark for 2013 until August 2014, according to the report.

More Articles on Healthcare Cost Growth:
AHA: Lower Hospital Costs Contribute to Slow Healthcare Spending Growth
Report: Spending Growth About the Same in 2012 for Privately Insured
S&P: Annual Healthcare Growth Rates Held Steady in July 

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