Centers for Medicare and Medicaid Services Physician Group Practice Demonstration 2009 results

For three years in a row, Marshfield Clinic demonstrates improved quality of care resulting in cost savings for Medicare

Marshfield Clinic has improved how its system delivers preventive care and care for patients while decreasing health care costs in the third performance year of a five-year Medicare demonstration project, the Centers for Medicare & Medicaid Services (CMS) announced today.

"Marshfield Clinic saw years ago that reform was necessary," said Theodore A. Praxel, M.D., M.M.M., FACP, medical director, Quality Improvement and Care Management, Marshfield Clinic. "This project accelerated our own reform efforts - aggressive, innovative changes - and that work is showing results. This is also further evidence that Marshfield Clinic is not satisfied with today, but looks forward to innovation and change that will increase value for our patients in the future."

Marshfield Clinic is one of only two out of a total of 10 large physician group practices to achieve this honor each of three years. Because of this success, Marshfield Clinic has so far saved the Medicare program more than $48 million over the three performance years reported.

"Health care cost and payment for delivering quality care are issues at the center of the nation’s health care reform debate now, so Marshfield Clinic is especially pleased to demonstrate for a third year that we provided savings for Medicare while further improving quality of care for the patients we serve," Praxel said.

Medicare beneficiaries receiving the plurality of their care in the Clinic system experienced improved quality of care at a lower cost to the federal Medicare program, compared to Medicare beneficiaries getting their care in the same geographic region from other providers.

CMS, part of the U.S. Department of Health and Human Services, initiated this Physician Group Practice (PGP) Demonstration to allow physician group practices to prove that providing proactive, coordinated care can also save money.

"Participation in this project teaches us ways to more quickly advance the value of care we deliver to all Marshfield Clinic patients," Praxel said. "Our goal is to help them receive the right care at the right time at the right place."