California Medical Groups Support Governor’s Cost Control Proposal
“America’s Physician Groups represents over 180 medical groups across California that serve millions of patients. Our members are greatly concerned that healthcare coverage remain affordable and accessible to our patients. Today, we want to acknowledge the Governor’s leadership in proposing the creation of the Office of Health Care Affordability and lend the support of our Association and membership to this effort. California has needed a strategic, organized approach to the monitoring and management of its vast healthcare system. We’ve been impressed by the efforts in Massachusetts and other states to tackle the daunting task of collecting the necessary data on providers, costs, and performance in order to manage such a process. We believe that our members have and will continue to contribute to the Governor’s efforts to control costs. Our member medical groups have shared financial responsibility with payers for over 30 years through the acceptance of capitated payment – a budget for their services that is very compatible with the cost target approach proposed by the Governor. The actuarial firm Milliman concluded in 2018 that our members’ cost control model saves California over $3 billion dollars per year.* The Berkeley School of Public Health concluded that the expansion of this provider delivery system and payment model could save California over $110 billion in a decade.* We look forward to working with the Governor and the Legislature this year to expand upon that success.”
Donald H. Crane, President & CEO
America’s Physician Groups
Contact: dcrane@apg.org (213) 624-2274
* Healthcare under the Delegated Risk Model in California: Lower cost, higher quality. July 16, 2018. Milliman Healthcare Town Hall. Accessed at: : https://www.healthcaretownhall.com/?p=9535#sthash.Bqnq5dIK.dpbs.
* Berkeley Healthcare Forum: A New Vision for California’s Healthcare System: Integrated Care with Aligned Financial Incentives. Shortell, Stephen and Scheffler, Richard. (2014). Accessed at: http://berkeleyhealthcareforum.berkeley.edu/wp-content/uploads/A-New-Vision-for-California%E2%80%99s-Healthcare-System.pdf.
Click here to download a copy of APG’s policy letter.
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About America’s Physician Groups
America’s Physician Groups is a not-for-profit, mission-driven association organized to assist accountable physician groups to improve the quality and value of healthcare provided to patients. America’s Physician Groups represents and supports physician groups that assume responsibility for clinically integrated, comprehensive, and coordinated healthcare on behalf of our patients. In California, APG represents over 180 physician groups across the state. Visit us at www.apg.org.
