The Providence Journal (http://www.projo.com/news/content/LIFESPAN_BLUE_CROSS_CONTRACT_10-29-10_KVKKJMB_v17.1ebf635.html) has an interesting article on payment agreement between BCBS of RI and hospitals in the state:
Rather than paying for each procedure or each day in the hospital, Blue Cross will provide a flat fee to cover all care for a given condition. That way, the hospital doesn’t make more money if it does more tests and procedures or keeps the patient longer.
Other insurers in the state will also be making similar arrangements.
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