It's already saved
At the same time, officials said, the program maintained good quality of services from doctors and hospitals under the new "episodes of care value-based payment strategy."
"We launched the Health Care Innovation Initiative in
The governor added that
The episodes of care change is one of several "value-based" strategies that the multi-billion-dollar TennCare program for the poor has pushed in the last few years as officials seek to keep a lid on provider cost increases, a prime drive of expenses along with drugs.
TennCare and major health insurers in
As a result, Long said, health care providers are being financially rewarded increasingly for positive patient outcomes, including high quality and efficient treatment of medical conditions.
"Episodes of care are helping us achieve low trends and reductions in costs, which is great news for
In an episode of care, providers can receive financial rewards if the services a patient received meet certain quality measures that are also cost effective.
TennCare and its insurers moved the
* There was a 3.4 percent reduction in costs associated with perinatal care relating to the time before and after birth.
* Officials saw an 8.8 percent drop in asthma exacerbation, which consists of acute or sub-acute episodes of progressively worsening shortness of breath, coughing, wheezing and chest tightness or any combination of these.
* There was a 6.7 percent reduction in total joint hip/knee replacement surgeries.
Officials said that overall, the cost for services in just these three types of episodes was
Conservatively assuming a 3 percent increase would have taken place in the absence of this initiative,
This year, five more types of health care services have been added to the episodes list: chronic obstructive pulmonary disease exacerbation, colonoscopy, acute and non-acute percutaneous coronary intervention, and cholecystectomy.
The state plans to have 75 episodes designed by 2020.
State officials say the episodes of care are becoming a more common approach to payment in
Some providers have already engaged in episodes of care agreements for commercial insurance and for
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