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An Experiment In Reducing Costs, Improving Care At Hillcrest Medical Center

Seventy-six year old Frank Morrow is not only having his knee replaced at Hillcrest Medical Center in Tulsa, Oklahoma. He’s also helping to test a Medicare payment system. Under the “bundled” approach, Medicare makes a single reimbursement for all the hospital and doctor care for heart and joint procedures, rather than making separate payments to the facility and physicians.

It’s a win-win-win proposition: The hospital gets guaranteed customers, Medicare saves 4.4% on procedures and Frank Morrow gets $271 as an incentive for going to a hospital that participates in the program.

Producer: Renato Perez

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