Four Massachusetts health care organizations save $150 million in Medicare costs

A federal report revealed that about $150 million has been saved by four Massachusetts health care organizations in Medicare costs by coordinating care for patients and putting efforts to keep them healthy and out of hospitals.

Those organizations are: Beth Israel Deaconess Care Organization, the doctors group Atrius Health, Steward Health Care System and the Mount Auburn Hospital doctors association. These all organizations are responsible for over one-third of the about $400 million in Medicare savings nationwide under a pilot program.

The program is testing a new system for delivering and paying for services. According to the report, a fifth Massachusetts health system took part in the pilot and Partners HealthCare, in the place of saving Medicare money, cost the program $17 million.

In 2012, the pilot program was launched and it intends to lower the costs of Medicare the government insurance program for the elderly, by giving more effective care. The program enables health systems in order to create pools of patients and doctors, known as Pioneer Accountable Care Organizations. It also pays providers based on set budgets in place of only reimbursing them for every medical service and procedure.

Health care providers make extra money for attaining high-quality outcomes. Those who were unsuccessful to stay within their budgets and score low on quality measures should pay penalties. Thirty-two health and hospital systems nationwide were involved in the program, though numerous dropped out.

The Beth Israel Deaconess Care Organization was the best performer in Massachusetts and it saved $53 million for Medicare. The Beth Israel Deaconess Care Organization is a group of doctors and hospitals associated with Beth Israel Deaconess Medical Center. About $48 million have been saved by the for-profit hospital chain Steward Health Care System.