An estimated 45% of the U.S. population (and 83% of those over age 65) have one or more chronic conditions, and there is growing consensus that optimal, proactive disease management in outpatient settings can increase patient quality of life, improve outcomes, and reduce costly inpatient admissions, says Sg2 Director Mark Larson. But several demonstration projects are exploring new models to align payment incentives to reward effective care coordination and disease management and reduce the need for acute care, he says.