Lessons from the Physician Group Practice Demonstration — A Sobering Reflection

• Published in: The New England journal of medicine Vol. 365; no. 18; pp. 1659 - 1661
• Main Author: Wilensky, Gail R
• Format: Journal Article
• Language: English
• Published: United States Massachusetts Medical Society 03.11.2011
• Subjects: Accountable care organizations; Cardiovascular disease; Centers for Medicare and Medicaid Services (U.S.); Cost control; Cost Savings; Diabetes; Fee-for-Service Plans; Group Practice - economics; Hospitals; Medicare; Medicare - economics; Medicare - organization & administration; Physicians; United States; United States; United States > US; Michigan
• ISSN: 0028-4793; 1533-4406
• DOI: 10.1056/NEJMp1110185

The mixed results of the Centers for Medicare and Medicaid Services' Physician Group Practice Demonstration project should dampen unreasonable expectations, particularly in terms of potential savings, for accountable care organizations. In early August, the Center for Medicare and Medicaid Services (CMS) announced the results of the Physician Group Practice (PGP) Demonstration project. Although the headline of the press release was glowing — “Physician Group Practice Demonstration Succeeds in Improving Quality and Reducing Costs” — the reported information suggests more mixed results. 1 These results should dampen unreasonable expectations, particularly in terms of potential savings, for accountable care organizations (ACOs), which were modeled after the PGP demo. The demo resulted from a directive by Congress in 2000 to test ways to encourage physicians who were part of traditional (fee-for-service) Medicare to provide . . .