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Research ArticleOriginal Research

Effects of New Funding Models for Patient-Centered Medical Homes on Primary Care Practice Finances and Services: Results of a Microsimulation Model

Sanjay Basu, Russell S. Phillips, Zirui Song, Bruce E. Landon and Asaf Bitton
The Annals of Family Medicine September 2016, 14 (5) 404-414; DOI: https://doi.org/10.1370/afm.1960
Sanjay Basu
1Department of Medicine, Stanford University, Stanford, California
2Center for Primary Care, Harvard Medical School, Boston, Massachusetts
MD, PhD
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  • For correspondence: basus@stanford.edu
Russell S. Phillips
2Center for Primary Care, Harvard Medical School, Boston, Massachusetts
3Division of General Medicine and Primary Care, Beth Israel Deaconess Medical Center, Boston, Massachusetts
MD
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Zirui Song
2Center for Primary Care, Harvard Medical School, Boston, Massachusetts
4Department of Medicine, Massachusetts General Hospital, Boston, Massachusetts
MD, PhD
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Bruce E. Landon
2Center for Primary Care, Harvard Medical School, Boston, Massachusetts
3Division of General Medicine and Primary Care, Beth Israel Deaconess Medical Center, Boston, Massachusetts
5Department of Health Care Policy, Harvard Medical School, Boston, Massachusetts
MD, MBA, MSc
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Asaf Bitton
2Center for Primary Care, Harvard Medical School, Boston, Massachusetts
5Department of Health Care Policy, Harvard Medical School, Boston, Massachusetts
6Division of General Medicine, Brigham and Women’s Hospital, Boston, Massachusetts
7Ariadne Labs, Brigham and Women’s Hospital, and Harvard T.H. Chan School of Public Health, Boston, Massachusetts
MD, MPH
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  • End Fee-for-service
    Thomas Rosenthal
    Published on: 19 September 2016
  • Published on: (19 September 2016)
    Page navigation anchor for End Fee-for-service
    End Fee-for-service
    • Thomas Rosenthal, Family Physician

    Hooray! Once again the Annals have proven to be a rigorous forum for family medicine. The sophisticated analysis by Dr Basu and colleagues demonstrates new heights in family medicine research and analysis regarding the complexities of paying for health services. Dr Magill puts their findings in historic context and voices the frustration many of us have regarding misplaced values in America's health care industry. Their...

    Show More

    Hooray! Once again the Annals have proven to be a rigorous forum for family medicine. The sophisticated analysis by Dr Basu and colleagues demonstrates new heights in family medicine research and analysis regarding the complexities of paying for health services. Dr Magill puts their findings in historic context and voices the frustration many of us have regarding misplaced values in America's health care industry. Their work demonstrates the value of teams in family medicine. Most of us do not have the skill set to develop mathematical models nor the insights to put them in context. Much as we rely on our office staff to deliver the PCMH model, our discipline needs the researchers and the sages.

    My career has spanned private practice, academics and most recently a stint with a large payer organizing a physician network to address the triple aim, or as Dr Magill expands it, the quadruple aim. It is my observation that all but the rare physician desires to do the right thing every hour they practice medicine. Insurers are stuck in a different model. Insurers live in a business world where doing the right thing is improving the bottom line for investors. Most payers want to do the right thing for "members", it just that the emphasis is different. So how does a business person trust a physician through the lens of business? Just as a rare few of our colleagues take advantage of weakness in the fee -for-service model, so too will a rare few of them take advantage of a global payment model. When your business model is paying for widgets, widget by widget, then fee-for-service makes sense and policing it is simplified to counting widgets delivered. Global payments, not so much. New strategies will be needed to be sure they get what they pay for and the bottom line is that their "members" must be happy through the next enrollment period. It still requires counting something. Candidates are annual visits, flu shots, glycosylated hemoglobin values, blood pressure or patient experience. Data systems are getting there.

    I was not fully successful in convincing large payers to trust primary care physicians to deliver. In part this is because payers have experience with large specialty groups refusing participation if they are not paid what they think their services are worth.

    Like Dr Magill, I believe that Medicare must lead the way. Only a government payer is independent enough to change the system and then to figure out how to supervise it. Likely pure fee-for-service must end for all physicians. However, no matter how it is paid for, primary care is the only proven base for health care that meets the triple aim.

    Competing interests: None declared

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    Competing Interests: None declared.
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The Annals of Family Medicine: 14 (5)
The Annals of Family Medicine: 14 (5)
Vol. 14, Issue 5
September/October 2016
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Effects of New Funding Models for Patient-Centered Medical Homes on Primary Care Practice Finances and Services: Results of a Microsimulation Model
Sanjay Basu, Russell S. Phillips, Zirui Song, Bruce E. Landon, Asaf Bitton
The Annals of Family Medicine Sep 2016, 14 (5) 404-414; DOI: 10.1370/afm.1960

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Effects of New Funding Models for Patient-Centered Medical Homes on Primary Care Practice Finances and Services: Results of a Microsimulation Model
Sanjay Basu, Russell S. Phillips, Zirui Song, Bruce E. Landon, Asaf Bitton
The Annals of Family Medicine Sep 2016, 14 (5) 404-414; DOI: 10.1370/afm.1960
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  • High Levels Of Capitation Payments Needed To Shift Primary Care Toward Proactive Team And Nonvisit Care
  • Costs of Transforming Established Primary Care Practices to Patient-Centered Medical Homes (PCMHs)
  • Synthesis Of Research On Patient-Centered Medical Homes Brings Systematic Differences Into Relief
  • In This Issue: Different Paths to Discovery
  • Time to Do the Right Thing: End Fee-for-Service for Primary Care
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Subjects

  • Methods:
    • Quantitative methods
  • Other research types:
    • Health policy
  • Other topics:
    • Organizational / practice change
    • Patient-centered medical home

Keywords

  • primary health care
  • models
  • theoretical
  • capitation fee
  • fee-for-service plans
  • patient-centered care

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