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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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KHN (Kaiser Health News) is a national newsroom that produces in-depth journalism about health issues. Together with Policy Analysis and Polling, KHN is one of the three major operating programs at KFF (Kaiser Family Foundation). KFF is an endowed nonprofit organization providing information on health issues to the nation.

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