Evaluating the Clinical and Economic Impact of the Alternative Quality Contract Phase 2

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In place since 2009, the Alternative Quality Contract is Blue Cross Blue Shield of Massachusetts’ novel provider payment system, under which medical groups receive a global payment covering all care used by each patient. The annual increase in that payment is set at the anticipated rate of general inflation over a five-year contract period, with additional performance-based payments available to each group. Early results from a Commonwealth Fund–sponsored evaluation indicate that the Alternative Quality Contract has reduced per-enrollee health care spending. This project will further investigate how the payment system is achieving this success and what the longer-run implications are for health care utilization and spending.

Grant Details

Grantee Organization:
President and Fellows of Harvard College
Principal Investigator:
Michael Chernew, Ph.D.
Award Amount:
$298,667.00
Approval Date:
July 12, 2011

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