Air date: November 1, 2009

Host: Kathy Miller, MD

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Interview: Mark Wynn, project manager, Premier Financial Service

One of the most contentious parts of the debate over reforming the health care system is the current system called "fee for service," in which physicians and hospitals are paid for what they do, rather than for how well they care for patients.

Medicare recently wrapped up a four-year study challenging that practice. Hospitals in the study were paid based on their "improved patient outcomes," regardless of how many tests and procedures were performed.

According to this government-funded study, the outcome-based payments actually prevented about 4,700 heart attacks in the hospitals that participated.

Mike Wynn was project manager for the company hired to analyze the data for the Centers for Medicare and Medicaid Services. He explained the findings to Sound Medicine's Dr. Kathy Miller.

Additional Resources:

• Read more about the success of the Medicare study in the online Senior Journal.
• Not everyone agrees. This Wall Street Journal article discusses downsides of the "pay for performance" model.

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