Dates of Project: 2007 to 2011
Field of Work: Health care financing reform
Problem Synopsis: Current health care financing, especially fee-for-service payment, tends to reward volume rather than quality and is widely recognized as a significant contributor to cost problems in the health care system. One of the proposed alternatives is "bundled payments," in which all providers involved in treating a single illness or injury episode are paid under one negotiated fee.
Synopsis of the Work: The Health Care Incentives Improvement Institute advanced the development and implementation of a bundled payment system known as Prometheus. Activities included developing case rates for bundled services, creating systems to track care and costs and determine payments to health care providers, and guiding pilot tests in three communities—Rockford, Ill.; Grand Rapids, Mich.; and Chester, Penn.
Evaluators at RAND and the Harvard School of Public Health conducted qualitative and quantitative analyses of the Prometheus pilots.
RWJF funded the project with five grants totalling about $6.5 million.
Key Results & Findings: