Governor Deval Patrick's Budget Recommendation - House 1 Fiscal Year 2010

Governor's Budget Recommendation FY 2010

Outside Section 38

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Alternative Hospital Payment Demonstration Project

SECTION 38.   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 one or more hospitals or hospital systems in the commonwealth. For purposes of this section, alternative payment 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.

This section allows the Secretary of Health and Human Services to pursue demonstration projects to support local hospitals and community health centers that provide high quality service to the safety net's patients.

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