Michigan Oncology Medical Home Demonstration Project: first-year results

Launched in May 2012, the Michigan Oncology Medical Home Demonstration Project is an innovative multipractice oncology medical home model supported by payment reform. In the first year of the project, four oncology practices (29 physicians) participated and enrolled 85 patients receiving chemotherapy for a cancer diagnosis (96 new chemotherapy starts). By creating an oncology medical home for patients, the project reduced costs associated with unnecessary emergency room visits and inpatient admissions, with an average estimated cost savings of $550 per patient, while also enhancing payments to providers. The total estimated cost savings for year 1 was $46,228. In addition to the financial savings realized through reductions in emergency room visits and hospitalizations, the program also demonstrated that participating practices had high adherence to national and practice-selected guidelines, instituted advance care planning, and provided effective and standardized symptom management. The results are promising and provide evidence that community oncology practices will embrace the transformation to a patient-centered model with properly aligned incentives and administrative assistance.