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Medicare Picks N.J. to Test Innovative Incentive System
Date:8/18/2009

ings ultimately will benefit the Medicare program - and taxpayers.

"This is a triple win scenario that works for patients, physicians and the hospitals," said Michael Kalison, chairman of Applied Medical Software, who worked with NJHA to design the pilot project. "It's a simple, elegant idea to align incentives of doctors and hospitals - all with the ultimate goal of creating a better healthcare outcome for the patient and eliminating unnecessary costs from our healthcare system."

Participating hospitals are AtlantiCare Regional Medical Center, Overlook Hospital in Summit, Holy Name Hospital in Teaneck, Jersey Shore University Medical Center in Neptune, Hunterdon Medical Center in Flemington, Monmouth Medical Center in Long Branch, St. Francis Medical Center in Trenton, Our Lady of Lourdes Medical Center in Camden, The Valley Hospital in Ridgewood, Somerset Medical Center in Somerville, JFK Medical Center in Edison and CentraState Healthcare System in Freehold.

The project will be carefully monitored and evaluated by CMS. At the pilot's conclusion, CMS will analyze an array of data - from quality indicators to cost savings - to determine whether its strategies could be replicated nationwide.

The program is designed around three core areas.

Efficiency Strategies

  • Physicians and hospitals will be encouraged to work together in non-clinical areas such as decreasing patient stays in the emergency department, improving operating room scheduling and improving discharge planning. Prolonged ED stays, for example, increase costs and provide a less-than-optimal environment for a patient awaiting a hospital bed. And better discharge planning with nursing homes or other providers can free up hospital beds and spare patients from a long delay in transferring to a more appropriate site.
  • Some of the efficiency strategies could be as simpl
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SOURCE New Jersey Hospital Association
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