Baskets of care

Our current health care payment system doesn’t reward health care providers who provide higher quality care or who do a good job of preventing medical complications. There are also few incentives for different health care providers (such as physicians and hospitals) to collaborate to improve care in ways that improve health outcomes and reduce costs – by reducing the rate of readmissions to the hospital, for example.

The concept of baskets of care that was included in the 2008 health reform bill seeks to bundle payments for a set of health care services – for example, all of the services needed for knee surgery - together in ways that will create incentives for health care providers to cooperate and innovate on ways to improve health care quality and reduce cost.

By July 1, 2009, the Commissioner of Health is charged with establishing uniform definitions for at least seven baskets of care, with input from work groups that include representation from health care providers, health plan companies, and organizations that work to improve health care quality in Minnesota. The Commissioner must establish standard quality measurements for the baskets of care by December 31, 2009.

Beginning January 1, 2010, health care providers that offer these baskets of care will be able to establish their own prices for the baskets. Bundling payments in this way will make it easier for consumers to find and compare cost information on the baskets of care. Quality information on the baskets will be publicly available beginning July 1, 2010.