Spending Differences Associated With the Medicare Physician Group Practice Demonstration

CONTEXT: The Centers for Medicare dually eligible: 381, 95% CI, 247-515; nondually eligible: 85, 95% CI, 32-138). There was significant variation in savings across practice groups, ranging from an overall mean per-capita annual saving of 866 (95% CI, 815-918) to an increase in expenditures of 749 (95% CI, 698-799). Thirty-day medical readmissions decreased overall (-0. 67%, 95% CI, -1. 11% to -0. 23%) and in the dually eligible (-1. 07%, 95% CI, -1. 73% to -0. 41%), while surgical readmissions decreased only for the dually eligible (-2. 21%, 95% CI, -3. 07% to -1. 34%). Estimates were sensitive to the risk-adjustment method. CONCLUSIONS: Substantial PGPD savings achieved by some participating institutions were offset by a lack of saving at other participating institutions. Most of the savings were concentrated among dually eligible beneficiaries.