More Primary Care Physicians Could Mean More Savings for Medicaid

News Type: 

News Article

Article: 

Secret to Medicaid Savings: More Doctors

July 7, 2011

Issue Areas: 

Cost, Delivery System Reforms, Economic Impacts, Financing, Prevention & Wellness, Vulnerable Populations

According to a study recently published in Health Affairs, Medicaid could see significant cost savings simply by having more participating primary care physicians.  The study analyzed each state on how the number of treatments performed and the price of each service affected Medicaid costs.  The study concluded that simply spending more on each patient did not increase health outcomes. In lowering the number of hospital admissions for chronic conditions, one may factor was the number of primary care physicians.  When states increased the number of these physicians, fewer people were sent to the hospital thus reducing overall Medicaid costs.