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Payment Models May be Associated with Fewer Visits, Lower Costs in Cancer Settings

Findings published in JAMA Network Open suggested that payment models with shared-savings components, such as the Oncology Care Model (OCM), may be associated with fewer visits and lower costs in certain cancer settings in the first year.

However, researchers indicated that the savings may be modest, given the costs of program administration.

“The magnitude of these overall associations needs to be weighed against the costs and potential savings incurred elsewhere (e.g., hospital and pharmacy),” the authors wrote. “However, the OCM was associated with different care decisions made upstream to those settings within the confines of the physician’s office, especially in prostate cancer.” 

In this nonrandomized controlled study, researchers used a difference-in-difference approach on 2 years of data — 1 year before and 1 year after the launch of the OCM — to compare the…

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