June 12, 2008

Surgery with a warranty

What it means to you: At Geisinger Health System in Pennsylvania, a revolutionary program offers free care for 90 days after coronary bypass surgery — a warranty, in other words. The one-year experiment began in February 2006 and revealed immediate results. In 117 cases, as the Pittsburgh Tribune Review reports, death rates, re-admission within 30 days of surgery, length of re-admissions and hospital charges all decreased. It’s no wonder that the ProvenCare warranty program has become hospital policy and will extend to other operations.

The scoop: By charging a flat rate for surgery, Geisinger assumes a risk: If the surgery isn’t done as well as possible the first time around, the hospital winds up paying for additional care and services. Geisinger’s business model could shake up health care as we know it.

  • Read an overview of the program in The New York Times.
  • In this article in the Scranton, Penn., Times-Tribune, Dr. Richard Gilfillan, CEO of Geisinger Health Plan, discusses how ProvenCare makes the hospital staff work harder, saves money for the hospital and its patients, and attracts customers.

Learn more:

The Association of American Medical Colleges weighs in with an article about how ProvenCare’s efforts to put money on the line results in better medical care.



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