In the transition to value-based care, several alternative payment models (APM) have been developed to provide financial incentives for providers to deliver coordinated, high-quality care at lower costs. The Medicare Shared Savings Program (MSSP) is …
We provide novel empirical evidence of market-level spillover effects of MSSP on non-MSSP beneficiaries by leveraging a plausibly exogenous source of variation in the MSSP penetration rate triggered by non-MSSP beneficiaries moving across hospital referral regions. The different directions of estimated spillover effects on hospital outpatient and E&M utilization may suggest that the MSSP-induced systematic change in care patterns has extended to non-MSSP beneficiaries.
Peer effects are an important mechanism influencing practice selection into the Medicare Shared Savings Program. The role of peer effects in aligning voluntary participation across practices may have implications for other value-based care models.