SALEM, OR — Two years after enlisting Coordinated Care Organizations to oversee care for Medicaid patients, Oregon’s Governor Kitzhaber is calling the idea a success. And ne said now he’s secured federal money to advance the program.
Governor John Kitzhaber announced Tuesday that the state has secured almost $2 billion from the federal government on the promise that the program leads to better care and lower costs. Coordinated Care Organizations, also called CCOs, are unique to Oregon and purport to better manage chronic diseases and prevent avoidable hospital visits.
According to a new report issued by the Oregon Health Authority, ER visits by Medicaid patients dropped 17% in the first full year, compared to two years earlier. Hospitalizations for heart and lung issues were also down. Ten of the state’s CCOs received incentive payments for meeting targets, while the other fie were docked pay. Kitzhaber insists the program will lead to a more sustainable health care system if adopted more widely. He is taking steps to apply the model to public employees and has pitched the idea to governors of other states.
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