UnitedHealthcare's Oncology Payment Model Shows Promise

A new cancer care payment model that rewards physicians for focusing on best treatment practices and health outcomes rather than the number of drugs they prescribe resulted in significant cost savings without affecting the quality of care.

The three-year study, conducted by UnitedHealthcare and five medical oncology groups around the country, covered 810 patients with breast, colon and lung cancer, which are among the most common cancers in the United States, according to the National Cancer Institute. The pilot demonstrated that the new cancer care payment model resulted in a 34 percent reduction in medical costs.

The details of the pilot were published today in the peer-reviewed publication Journal of Oncology Practice. The report, "Changing Physician Incentives for Affordable, Quality Cancer Care: Results of an Episode Payment Model," demonstrates the potential effectiveness of new approaches to the current "fee-for-service" payment model for cancer therapy.

Press release: http://bit.ly/VYAg9Y

Source: UnitedHealthcare

Related commentary: http://www.cnbc.com/id/101817100