Home News Competing Analyses Agree on One Point: Maryland’s Hospital Budget Capping Program a “Solid Foundation” for Reducing Costs

Competing Analyses Agree on One Point: Maryland’s Hospital Budget Capping Program a “Solid Foundation” for Reducing Costs

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Although a joint Harvard University-University of Pennsylvania analysis of Maryland’s controversial hospital budget-capping program found no correlation to cost savings or reduced utilization during that program’s pilot phase, conducted in the state’s rural hospitals from 2010-13, researchers nevertheless called the program a “solid foundation” for shifting over to value-based care.

“We don’t think the program is bad,” Harvard Medical associate professor of healthcare policy Dr. Ateev Mehrotra told the Baltimore Sun. “It should be refined to include a broader scope of care.”

Indeed, state officials agree.

Donna Kinzer, executive director of Maryland’s Health Services Cost Review Commission, noted that two independent analyses conducted earlier this year — both using more recent data — showed that the program had saved CMS more than $550 million between 2014-16, its first three years in full operation.

“It is a work in progress,” Kinzer said.

Get the whole story here, from the Baltimore Sun‘s Andrea K. McDaniels.