Evaluating Blue Cross Blue Shield of Michigan's Physician Group Incentive Program


To encourage providers to work together to assume joint responsibility for their patients' care, Blue Cross Blue Shield of Michigan, in cooperation with the Michigan State Medical Society, has implemented a physician group incentive program (PGIP). Groups of physicians are evaluated on population-based cost and quality measures and provided incentives through a pay-for-performance program. For physicians to be financially successful, they have to join together, using the patient-centered medical home model, to achieve high performance on cost and quality. This project will document: 1) how the PGIP was developed and implemented; 2) the change in participating physician groups' organizational structures and systems of care; 3) the effect on providers' perceptions regarding practice transformation, costs, and quality; and 4) the impact on utilization, costs, quality, and relationships between physicians and payers.

Grant Details

Grantee Organization:
Regents of the University of Michigan
Principal Investigator:
Christy Lemak, Ph.D.
Award Amount:
Approval Date:
April 13, 2010

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