Monday, April 22, 2019

CMS to launch new direct contracting pay models in 2020


SUSANNAH LUTHI  April 22, 2019
HHS on Monday launched an ambitious, double-pronged strategy to shift primary care from fee-for-service payments to a global fee model where clinicians and hospitals can assume varying amounts of risk.
HHS Secretary Alex Azar told a crowd of stakeholders at the American Medical Association in Washington the new programs are expected to shift at least a quarter of people in traditional Medicare out of fee-for-service.
The first model offers two payment options where small primary care practices will get a set, flat fee per patient. Bonuses or penalties will depend on their ability to keep their patients "healthy and at home," CMS' Innovation Center Director Adam Boehler said.
For larger practices and health systems, there are additional voluntary models. Under the first "professional option," providers would assume 50% of the risk, including savings and losses. Under the "global option," providers would take on full risk.
There is also a "geographic option," where health systems or plans could assume the risk for the total cost of primary care in their local communities.
Nearly all the models will launch in January 2020, with the geographic option projected to begin mid-year 2020.
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