Briefs & Reports

HMA Q & A: Maryland Tests Whether All-Payer Model Based on Total Cost of Hospital Care Can Save Money and Improve Quality

Maryland is the only state with an all-payer model for hospital services, which eliminates the cost-shifting between payers that takes place in other states.

Under an updated version designed to reduce avoidable emergency room, inpatient and outpatient spending at hospital-owned facilities, hospitals have agreed to a 3.58 percent annual ceiling on per capita hospital revenue growth. Furthermore, Maryland has assured the Centers for Medicare and Medicaid Services (CMS) $330 million in Medicare savings over five years.

For an update on the new initiative, we spoke with John M. Colmers, Vice President of Health Care Transformation and Strategic Planning at Johns Hopkins Medicine, and Chairman of Maryland?’s Health Services Cost Review Commission; and Carmela Coyle, President and Chief Executive of the Maryland Hospital Association.