Groups agree to extend Medicare shared-savings demo

NEWS IN BRIEF — Posted Aug. 22, 2011

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Ten physician groups participating in a Medicare shared-savings payment model demonstration have agreed to participate in the experiment for an additional two years, the Centers for Medicare & Medicaid Services announced on Aug. 8.

Beginning in 2005, the groups have earned incentive payments based on the quality of care and the level of cost savings the groups provided to the Medicare program. Medicare has paid $110 million in bonuses to seven of the groups, while three groups have yet to earn any incentives.

"As we work to help bring care coordination to a broader set of providers through accountable care organizations, the lessons learned by this demonstration provide great insight into how to use Medicare's payment systems to improve quality while reducing costs," said CMS Administrator Donald M. Berwick, MD.

The groups participating in the demonstration are the Billings (Mont.) Clinic; Dartmouth-Hitchcock Clinic, Bedford, N.H.; The Everett (Wash.) Clinic; Forsyth Medical Group, Winston-Salem, N.C.; Geisinger Health System, Danville, Pa.; Marshfield (Wis.) Clinic; Middlesex Health System, Middletown, Conn.; Park Nicollet Health Services, St. Louis Park, Minn.; St. John's Health System, Springfield, Mo.; and University of Michigan Faculty Group Practice, Ann Arbor.

Note: This item originally appeared at

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