A RAND Corp. article published in the New England Journal of Medicine (NEJM) uses data extrapolated from a Massachusetts study to estimate the effects of eight cost-controlling mechanisms.  RAND finds that bundled payments are the most promising cost control, potentially lowering health care costs 5.4 percent by 2019.  The study also found that, among other mechanisms, changes in hospital rate regulation, implementation of health IT measures, increased disease management, increased use of medical homes, and expansion of retail clinics also have the potential to reduce U.S. health care costs, though less than bundled payments.

Hussey, P.S., Eibner, C., Ridgely, M.S., & McGlynn, E.A. (2009). Controlling U.S. health care spending — separating promising from unpromising approaches. The New England Journal of Medicine, 361(22): 2109-2111. doi: 10.1056/NEJMp0910315.*

*Note: The New England Journal of Medicine (NEJM) policies preclude us from providing an article abstract or linking to the NEJM website; however, this article is available in full via the NEJM website. 

Authors: Peter S. Hussey, Christine Eibner, M. Susan Ridgely, Elizabeth A. McGlynn