The Cost Cure? Assessing Clinical Quality Responses to Maryland's Global Budget Model
In 2014, Maryland implemented a new global budgeting system to complement its unique rate-setting regime. The new global budget model (GBM) sets both individual hospital rates for goods and services, as well as annual maximum allowed revenues for hospitals. This study uses a census of hospital admissions in Maryland from before and after the implementation of the GBM (2012-2015) and compares clinical outcomes to those in Washington State for the same period using a difference-in-differences analysis. The analysis considers shifts in probabilities of inpatient mortality and 30-day readmissions. The results predict shifts of very low magnitude in an uncertain direction, suggesting that the changes in provider incentives created by global budgeting and rate-setting do not have a certain effect on clinical quality, and could possibly play no major role in quality outcomes.
Showing items related by title, author, creator and subject.