GAO examines competition in hospital purchasing

Group purchasing organizations are intermediaries which theoretically group hospitals together to give them more leverage in purchasing negotiations. In 2009, they accounted for an average of 73 percent of hospitals’ non-labor purchases and were used by 98 percent of American hospitals. There are more than 600 of them in the United States, but the six […]

Utah tests hybrid bundled payment system

The Salt Lake Tribune‘s Lisa Rosetta explains Utah’s new bulk payment pilot program, which aims to drive down costs by paying participating physicians flat rates for delivering babies and managing diabetes. In a departure from previous systems, the Utah hybrid will still include mini-reimbursements on a per-procedure bases, primarily to prevent instances of undertreatment. For […]

Bundled payments may improve care, lower costs

Kaiser Health News’ Phil Galewitz looks at bundling hospital payments, a possible solution to the confusion and cost of separate billing. Under these programs (now in Tulsa and San Antonio, and coming soon to Denver, Albuquerque and Oklahoma City), “Medicare makes a single reimbursement for all the hospital and doctor care for heart and joint […]