Compensation Specialists Via Episodic Payments Lowers the Cost of Care, According to Study

Between October 2009 and December 2012, five volunteer medical groups of oncologists were paid a single fee, in lieu of any drug margin, to treat their patients. Chemotherapy medications were reimbursed at their average sales prices. Compensating oncologists via episodic payments lowered the cost of care by 34% even though drug costs rose 179%.

Source: Newcomer, Lee N., MD, Bruce Gould, MD, Ray D. Page, DO, PhD, Sheila A. Donelan, MS, and Monica Perkins, PhD. “Changing Physician Incentives for Affordable, Quality Cancer Care: Results of an Episode Payment Model.” Journal of Oncoloy Practice, 8 July 2014. Web. 27 March 2015.

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