Examining the Impact of Global Budgets on Health Care Costs

Design and implementation of global budgeting projects in New York

From 1994 to 1999, the New York State Department of Health, Albany, N.Y., made a number of grants to sites throughout the state to develop prospectively paid, integrated delivery systems of regional health care providers—i.e., provider-sponsored networks of hospitals, physician groups and other provider groups.

Under this project, staff from the department of health and subcontractors provided technical assistance and monitoring for the sites.

This project was part of the Robert Wood Johnson Foundation (RWJF) national program Changes in Health Care Financing and Organization (HCFO).

Key Results

  • Project staff reported the following results in a Findings Brief available on the HCFO website.

    • The demonstration sites made significant advances in the integration of health care services.
    • Physicians at the demonstration sites became educated about the practice options available to them, leading to better business decisions.
    • Although none of the demonstration sites achieved status as licensed integrated delivery systems during the grant period, each made progress toward that end.
    • In addition to learning from the experts, providers learned from each other.