This is not the official budget document.

Budget Summary FY2010

Outside Section 117
Data Current as of:  1/26/2010

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Alternative Hospital Payment Demos

SECTION 117.   Notwithstanding any general or special law to the contrary, the secretary of health and human services, may, consistent with federal law, pursue an alternative payment demonstration project with 1 or more hospitals or hospital systems in the commonwealth. For the purposes of this section, "alternative payment" shall mean a methodology that establishes an aggregate prospective payment to cover the total cost of a defined set of health care services provided by a hospital or hospital system, creating incentives for such providers to integrate services, manage costs and utilization and ensure high-quality care. In implementing any such alternative payment demonstration project, the secretary shall consider using information systems to monitor performance of the hospital or hospital system and apply measures of cost and quality. The secretary shall report to the house and senate committees on ways and means and the joint committee on health care financing 30 days prior to implementing said demonstration project: (1) the type of alternative payment system to be demonstrated; and (2) the projected costs associated with the implementation of said demonstration project.