Mass. Panel: End Fee-for-Service Payments for Doctors - Health Blog - WSJ

By Shirley S. Wang Massachusetts state houseOne of the much-discussed drivers of the high cost of health care in the U.S. is that doctors are paid for every procedure and test, which gives a financial incentive to provide more and more treatments, even if they aren’t strictly necessary. That system could change drastically in Massachusetts, as the state struggles to pay for its universal health insurance plan. A Massachusetts commission yesterday recommended that the state shift its payment method from the ubiquitous “fee for service” formula to one where health-care providers would be grouped into networks and paid a flat monthly or annual fee. Read More: Mass. Panel: End Fee-for-Service Payments for Doctors - Health Blog - WSJ