Evaluating the Impact of a Tiered Hospital Network on Costs

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Tiered hospital networks are an increasingly popular strategy for reducing health care spending. Network hospitals are categorized based on quality and cost, and cost-sharing differences between tiers incentivize patients to seek care from preferred hospitalsthat is, those with lower costs and higher measured quality. Using data from Blue Cross Blue Shield of Massachusetts, this project will assess how a tiered hospital network with large differences in cost-sharing between tiers affects choice of hospital, use of services, and prices. The results will inform insurers and policymakers about the effectiveness of tiered networks as a tool for reducing overuse and lowering prices.

Grant Details

Grantee Organization:
President and Fellows of Harvard College
Principal Investigator:
Michael Chernew, Ph.D.
Award Amount:
$236,187.00
Approval Date:
November 13, 2012

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