Back in July, the LA Times reported on this. Just seeing it now. The changes would happen in this coming January. The world of fee for service is slowly ending in the U.S. The insurance companies and others paying for poor outcomes are going to demand improvement, though they too are the part of the problem in our current system.
Perhaps the AMA and others might want to consider getting ahead of the curve and supporting Single Payer before it is the tsunami that washes over them. Better to ride the wave than get buried by it.
The California Public Employees’ Retirement System, one of the nation’s biggest healthcare purchasers, adopted a similar idea called reference pricing for joint replacement surgeries.
The giant pension fund limited what it would pay for knee and hip surgeries to $30,000 after finding that its hospital bills ranged from $15,000 to $110,000 with no discernible difference in quality. The program saved CalPERS more than $5 million over a two-year period.