Large multi-specialty medical groups offer higher quality, lower cost care
A study published in the May 2010 online issue of Health Affairs finds that large multi-specialty medical groups provide higher quality care at a lower cost compared with physicians in small group practices.
"Higher Healthcare Quality and Bigger Savings Found at Large Multi-specialty Medical Groups," by lead researcher William B. Weeks, MD, of the Dartmouth Institute for Health Policy and Clinical Practice, was partially supported by the California HealthCare Foundation.
"Our research shows that large, well-organized multi-specialty practices are poised to take costs and quality to a new level," said Weeks. "Given where we are headed with healthcare reform, it makes sense that large group practices begin to participate in accountable care models."
The study examines the costs and quality of care delivered to fee-for-service Medicare beneficiaries in 22 healthcare markets by physicians in small group practices and those in large multi-specialty groups (250 to 13,000 physicians) who are members of the Council for Accountable Physician Practices.
The study included 741,448 patients whose ambulatory care claims were examined over a two-year period. Researchers looked at several quality measures, including breast cancer screening and specific tests for those with diabetes. Cost measures included physician spending per Medicare patient, inpatient spending, home healthcare costs and Medicare payments per patient.
Overall, the large multi-specialty group practices improved the quality of care by 5 percent to 15 percent with a 3.6 percent ($272) lower annual cost per patient. While the Medicare cost savings were relatively small, the study found that if all physicians performed at this level, the Medicare program could yield $15 billion per year in savings.
The study's findings support the growing argument that large multi-specialty group practices, with infrastructure already in place, are well positioned to serve as accountable care organizations.
