Evaluation of the Maryland All-Payer Model

Determining the effect of global budgets for hospitals on health care spending, quality, and utilization

By Susan Haber Maggie Cole-Beebe

RTI evaluated the effect of global budgets for hospitals—which is a unique, state-based hospital reimbursement strategy—on health care spending, quality, and utilization. As part of the Maryland All-Payer Model evaluation, RTI applied complex analytics to large health care claims data sets to determine the effects of hospital reimbursement on covered populations. The model reduced both total expenditures and total hospital expenditures.

Our results demonstrate that novel, multi-payer reimbursement models can have measurable impacts on covered populations’ spending and utilization. These results may be used to inform the Center for Medicare & Medicaid Innovation’s decision to continue Medicare’s participation in Maryland’s All-Payer Model initiative, as well as adoption of all-payer models—including global budgets—in other states.