MedPAC Recommends Single-Payment Pilot Program for Hospitals, Physicians

The Medicare Payment Advisory Commission (MedPAC) has voted to propose a pilot program to study the viability of a shared, single-payment system for hospitals and physicians treating the same patient for the same condition. MedPAC will present their proposal and recommendations to Congress later this year. MedPAC made the recommendations in an effort to promote efficiency and reduce hospital readmissions. MedPAC believes that by providing a single or bundled payment for a defined list of medical conditions, Medicare might be able to encourage hospitals and physicians to work more closely together. Doctors and hospitals could share the savings from more efficient treatment, a practice currently prohibited.