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Embracing incentives for efficient healthcare

The Wall Street Journal, November 30, 2010

Spurred by incentives in the federal health-overhaul law, hospitals and doctors around the country are beginning to create new entities that aim to provide more efficient health care.

But these efforts are already raising questions about whether they can truly save money, or if they might actually drive costs higher.

In Arizona, Tucson Medical Center is forming a company that the hospital will own jointly with local physicians' practices. The joint venture will aim to sign contracts with insurers and Medicare to earn financial rewards if it saves health-care dollars.

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