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Mass. recasting health payments

The Boston Globe, September 27, 2010

Governor Deval Patrick’s administration is reviving the state’s ambitious plan to change how doctors and hospitals are paid, aiming to hand the Legislature a specific proposal by Jan. 1 and end months of disagreement over how to control health care spending.

Dr. JudyAnn Bigby, secretary of health and human services, convened a small group of state officials and health care executives earlier this month to draft a first-in-the-nation blueprint for scrapping the current payment system, in which doctors and hospitals are typically paid a negotiated fee for every procedure and visit. This system, called fee for service, is widely viewed as lacking coordination and encouraging unnecessary tests and procedures.

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