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. 2018 Feb 5;33(7):1028–1034. doi: 10.1007/s11606-018-4309-x

Table 2.

Factors Present in States that Did or Did Not Generate Net Savings for Medicare

Net savings for Medicare?
Yes No
MI VT PA NY RI NC ME MN
Factors associated with generating net savings*
 No late entrants allowed after the demonstration start date
 Practices had to be recognized PCMHs when they entered the demonstration (no grace period to obtain PCMH recognition)
 All payers’ demonstration payment models incentivized consistent activities within a state
 Payers’ demonstration payment models included opportunities for practices to earn performance bonuses
 Demonstration participants received the demonstration payments and bonuses they expected to receive
Factors that may be necessary but not sufficient to generate net savings
 A precursor PCMH initiative offered payments to practices
 Payers participated voluntarily in the MAPCP Demonstration
 Leaders of state government supported the demonstration
 Stakeholders and physicians supported the demonstration
 Complementary payment and care delivery reforms underway
 Most practices met NCQA’s PCMH recognition standards (as opposed to another entity's PCMH recognition standards)
 Care coordinators focused on high-risk patients
Factors not associated with net savings
 A large number of practices participated (> 100 practices)
 Practices were only required to recertify as PCMHs every 3 years (instead of more frequently—e.g., every 12–18 months)
 Practices were required to offer round-the-clock access to care
 Other organizations received demonstration payments to support/supplement practices’ activities (e.g., Physician Organizations in MI, Community Health Teams in VT)§
 Technical assistance was viewed positively by practices
 Technical assistance targeted to care coordinators was offered
 Care coordinators tended to be employed by practices (as opposed to a health system or outside entity)
 Care coordinators tended to be nurses (as opposed to individuals with less clinical training)
 Practices regularly received hospital discharge data or alerts

● = factor is present in state; ○ = factor is partially present in state; empty cell = factor is not present in state; MAPCP = Multi-Payer Advanced Primary Care Practice; PCMH = patient-centered medical home

*These factors were present in ≥ 3 of the 4 states that generated net savings and absent from ≥ 3 of the 4 states that did not generate savings

† These factors were present in ≥ 3 of the 4 states that generated net savings and ≥ 3 of the 4 states that did not generate savings

‡ These factors did not meet either of the prior two criteria, suggesting that they may not have a relationship with net savings

§ The payment methodologies used in these five states are described in our online appendix