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The potential of global payment: insights from the field
The potential of global payment: insights from the field
Increasing awareness of cost and quality problems caused by the prevailing fee-for-service payment system has led to a reemergence of interest in payment models that build on the capitation approach, generally referred to as global payment. This project interviewed and surveyed physician leaders of small and large organizations, as well as other industry experts with experience with managed care in a variety of global payment arrangements, to glean insights into global payment successes and failures. Results showed that many issues plaguing capitation payment programs in the 80s and 90s have largely been resolved and that physicians and industry leaders felt that cost reductions of 20 percent to 30 percent are achievable under well-constructed global payment models, while improving quality of care. Industry experts strongly recommended that a range of global payment structures be phased in and applied to both large and small physician entities.
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