Differences in the Cost of Health Care Provided by Group Practices in Minnesota

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This article reports the findings of a study designed to identify differences in the cost and quality of care provided by medical group practices in Minnesota. Fifty-three practices that provide services to enrollees of employer-based self-insured health plans were included in the study. Costs adjusted for case mix and payment levels were found to vary from $2,400 to nearly $4,700 per member per year. Quality of care had less variance and was not found to be related to cost. The practices that provided high-quality, low-cost care included both relatively small physician-owned practices and large, multi-clinic systems that also owned hospitals.

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