Maryland hospitals and doctors are facing opposing financial incentives

Baltimore Business Journal, June 3, 2014
Maryland hospital regulators are in the throes of figuring out a new way to pay doctors, and doctors hope to have a new plan by the end of the year. Maryland, which has long controlled hospital rates, in January launched a new approach to regulating hospital finances. Instead of paying hospitals per service, beginning this year hospitals get a set amount of money and must treat all their patients within that budget. The new system will push hospitals to reduce readmissions and unnecessary treatment. But the new rules apply only to hospitals. Doctors are still paid per service, which means they get paid more for ordering more tests and visits.

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