Maryland All-Payer Model Agreement

[11] “Maryland`s All-Payer Global Budget Cap Model and Its Implications for Providers” The Advisory Board Company, May 2016. www.advisory.com/health-policy/resources/2016/maryland-all-payer-model-and-implications-for-providers The updated program aims to limit annual growth in per capita hospital spending to 3.58%, which is the 10-year growth rate of Maryland`s per capita economy. Another goal was to limit annual per capita payment growth for Maryland Medicare hospitals between 2015 and 2018 to below the national annual Medicare annual growth rate per capita, and to reduce Medicare`s subsidy by at least $330 million over that period. In August 2016, the estimated cumulative reduction in the Medicare grant in Maryland was estimated at $429 million, as the abandonment is well above the model`s $330 million in savings over five years. [12] While Medicare`s subsidy for Maryland has decreased, the net result is a continuous annual subsidy of $1.4 billion. In 2014, the state implemented a model that shifted the structure of state hospital services to an annual overall hospital budget comprising hospital and outpatient hospital services. In its new contract, the Maryland model will extend the approach to the entire health care system from January 1, 2019. According to a statement from Governor Larry Hogan, R-Maryland, by 2023, the model will achieve additional savings of $300 million per year and a total of $1 billion over five years. Service providers demand more than just leadership; A number of new skills are essential to the success of payment reform and are an important undertaking. Many organizations face countless challenges in reorganizing care, while others have totally avoided payment reform, bearing in mind that they will not be successful. The Accountable Care Learning Collaborative has compiled a list of skills necessary for ACOs` success that also apply to models like this.15 Key competencies can be divided into four groups: to address these trends, Maryland introduced the All-Payer model in 2014. The model set fixed global medicare budgets for hospitals – a specified annual amount of funding to cover the vast majority of hospital and outpatient services – based on historical spending trends, with the aim of limiting cost increases and unnecessary use.

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