Massachusetts considers new capitation plan

June 19, 2009

A Massachusetts committee on healthcare payment reform will recommend switching the state's fee-for-service payment system to a capitated or "global" payment model.

A Massachusetts committee on healthcare payment reform will recommend switching the state's fee-for-service payment system to a capitated or "global" payment model.

The transition would require physicians to join accountable care organizations, which will negotiate the annual global payment for physicians with commercial and government health plans, according to recommendations released in May.

A new state oversight board would develop criteria for ACOs to calculate the global payment, including factors such as practice location and specialty, but bonuses would also be awarded for patient-centered care.