Large medicaid practices and medicaid mills

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JAMA
|November 28, 1980
PubMed

Insights

Large Medicaid practices (LMPs) are not "Medicaid mills." Despite treating most Medicaid patients, these practices show no evidence of low-quality care, excessive incomes, or abuse of services. Physician demographics differ, however.

Area of Science:

  • Health Services Research
  • Medical Economics
  • Public Health Policy

Background:

  • Concerns exist regarding the quality of care in large Medicaid practices (LMPs), with some potentially operating as "Medicaid mills."
  • LMPs, defined as practices with at least 30% Medicaid patients, serve a significant portion of the Medicaid population.

Purpose of the Study:

  • To investigate whether physicians serving a disproportionate number of Medicaid patients operate "Medicaid mills."
  • To assess the quality of care, operational characteristics, and physician demographics in LMPs.

Main Methods:

  • Analysis of survey data from medical practices.
  • Comparison of operational metrics (visit length, ancillary services, staffing) and physician characteristics (age, training, credentials) between LMPs and other practices.

Main Results:

  • LMPs, while a minority of practices (15.8%), care for nearly 60% of Medicaid patients.
  • No evidence found to characterize LMPs as "Medicaid mills" regarding quality of care, ancillary services, staffing, or physician income.
  • Slightly shorter visit lengths (by two minutes) were observed in LMPs.
  • LMP physicians were older, more likely foreign-trained, and less likely to be board-certified.

Conclusions:

  • Large Medicaid practices do not appear to be "Medicaid mills" based on the studied metrics.
  • While operational differences exist, they do not indicate substandard care.
  • Physician demographics in LMPs warrant further investigation regarding practice patterns and patient outcomes.

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