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Massachusetts Attorney General Martha Coakley says 'global payments' to health care providers will not reduce medical expenses

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Gov. Deval Patrick has proposed legislation that would move the state away from a fee-for-service approach to health care and toward global payments by creating accountable care organizations to better coordinate patient care.

MarthaCoakleyRH.jpgMartha M. Coakley

BOSTON – A new report from state Attorney General Martha M. Coakley finds that so-called “global payments” to health care providers do not lead to consistently lower medical expenses.

In its second annual report on health care costs in Massachusetts, Coakley’s office says the market continues to be plagued by wide variations in payments made by health insurers to providers – variations that are necessarily tied to the quality of care.

Gov. Deval L. Patrick has proposed legislation that would move the state away from a fee-for-service approach to health care and toward global payments by creating accountable care organizations to better coordinate patient care.

Coakley in her report warns a shift to ACOs is not by itself a “panacea to controlling costs.” And she says a shift to global payments could even make market disparities worse.


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