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NJ hospitals pioneer cost-cutting model

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By GEOFF MULVIHILL
Associated Press

PRINCETON, N.J. (AP) - A program to reduce medical costs in New Jersey is going national.

Since 2009, a dozen New Jersey hospitals have given doctors bonuses when they save the hospitals money as they treat patients covered by Medicare. It's a concept called gainsharing.

The New Jersey Hospital Association says costs have been reduced 8 to 10% at the hospitals over the first three years of the program.

Dr. Anthony Granato says the incentives have made him think about costs in a way he never had. And he says he's made simple changes to reduce costs, such as using less expensive antibiotics when he can.

As part of the national health care overhaul, the program has been made available to hospitals nationwide.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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