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Massachusetts Medical Society Officers Testify on Payment Reform

Physicians urge pilot projects for a careful, deliberate, and thoughtful approach

Contact: Richard P. Gulla
rgulla@mms.org
(781) 434-7101
pager: (877) 820-9023

Waltham/Boston -- October 8, 2009 -- The President and President-Elect of the Massachusetts Medical Society today testified before the legislature’s Joint Committee on Health Care Financing on the state’s proposed payment reform plan, saying that while studying new ways to pay physicians and hospitals is worth pursuing to control soaring costs, any such plan “has to be approached carefully and deliberately.”

Mario Motta, M.D., President of the 22,000-member statewide physicians association, said that “the kind of transformation envisioned here has never been done anywhere in this country on a system-wide basis. For that reason, there are many things we don’t know about what could happen when you try to expand its scope and application.”

Because of these unknowns, Dr. Motta said the physicians are very strong advocates for establishing pilot projects for these innovations. “We need to uncover the unintended consequences, learn from mistakes, and adjust, before it’s rolled out to larger sectors of our population,” he told the legislators.

Dr. Motta further said that today few physicians right now could make a successful transition to a new payment model today, and that five years probably won’t be enough time for the transition to be accomplished. “We understand the urgency of the cost issue,” he said, “but if we move too fast, many physicians won’t be able to keep their practices open, and shortages that we are experiencing in many specialties – including primary care – will only get worse.”

He also suggested that a wider focus is necessary to resolve health care problems in the state. “We cannot focus on payment reform as the only answer,” Dr. Motta said. “We need to address patient education, wellness and prevention incentives, defensive medicine, administrative waste, and the over-concentration of our health insurance industry.”  

In closing comments, Dr. Motta said “physicians are committed to working with you on these issues. We bring to the table energy, creativity, and most of all, the direct experience of caring for patients. We’re ready to work with you on creating something that works for every stakeholder in health care.”

Dr. Alice Coombs, President-Elect of the Massachusetts Medical Society and the only physician member of the state’s payment reform commission, in complementing Dr. Motta’s testimony, said that the health care system in Massachusetts is too diverse to impose a single solution on everyone and that the differences in specialties, physician practices across the state, economic conditions, and even patients must be considered.  “Our physicians are telling us that one size does not fit all,” she said.   

Dr. Coombs also said that any new payment model must address several issues, among them improving the status of primary care and providing assistance and support to make any transition to a new payment model easier such as with the establishment of electronic medical records. She also said any new model must consider waste in the administrative aspects of health care and the widespread costly and wasteful practice of defensive medicine – two areas that could yield substantial savings. 

The most frequent comment from physicians, said Dr. Coombs, was that the proposed new global payment system is a return to capitation, a previous payment model that didn’t work for many physicians. 

Dr. Coombs said “the commission didn’t have the time or resources to get into all of these concerns, but I believe the Legislature has the opportunity and the duty to be more thoughtful and comprehensive” to a new payment model. 
 
She suggested that a good starting place for the Legislature would be pilot projects on episodes-of-care – a model where payments are bundled around a patient’s diagnosis, rather than allocated for every single action. “This approach encourages the right care,” she said, “while acknowledging that every diagnosis is different.”

Dr. Coombs closed her testimony with an urgent plea that practicing physicians be named to the oversight authority for payment reform, with full voting rights and full power to make policy. “One thing we learned at the commission,” she said, “is that voice of the practicing physician is absolutely essential to developing a system that will work. At the end of the day, physicians will be the ones expected to work with a new system. It only makes sense that we help design it, too.”

Additional Resources

The Massachusetts Medical Society, with some 22,000 physicians and student members, is dedicated to educating and advocating for the patients and physicians of Massachusetts. The Society publishes the New England Journal of Medicine, a leading global medical journal and web site, and Journal Watch alerts and newsletters covering 13 specialties. The Society is also a leader in continuing medical education for health care professionals throughout Massachusetts, conducting a variety of medical education programs for physicians and health care professionals. Founded in 1781, MMS is the oldest continuously operating medical society in the country. For more information please visit www.massmed.org, www.nejm.org, or www.jwatch.org.   

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