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Lower Health Spending in Medical Homes Using Bundled Payments

Patient-centered medical homes reimbursed with bundled payments can save money in patient care costs. Commonwealth Fund–supported researchers examined claims and eligibility data from 2008 through 2010 for some 10,000 patients in three upstate New York physician practices taking part in a pilot medical home project involving patients covered by a variety of public and private insurance. Compared to a control group of non-medical home practices reimbursed on a fee-for-service basis, the pilot practices paid through bundled payments had 6 percent to 8 percent lower health care spending.

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