MINNEAPOLIS, January 31, 2008—A Wall Street Journal article today described how a coalition of large employers is launching a program to pay doctors substantial bonuses for creating medical homes for patients.

The initiative is the most extensive attempt yet by Bridges to Excellence in the move to pay physicians for taking better care of patients. Last year, the program paid out roughly $10 million in bonuses to doctors in 18 states.

The latest initiative seeks to reward primary-care physicians significantly, but they are asked to make big changes and adopt a more integrated approach to coordinating patients' care.

Required changes include following up on referrals to other physicians, systematically tracking tests, flagging abnormal results and following medical guidelines to monitor and treat diabetes and other chronic conditions.

Physicians who make these changes could receive $125 annual bonuses for each patient covered by a participating employer — to a maximum $100,000 a year.

Bridges to Excellence estimates that such quality improvements save participating companies $250 to $300 per patient in the first year.

Bridges to Excellence is a national employer-led pay-for-performance program that pays doctors for optimal care of diseases such as diabetes and heart disease. National corporations participating in the initiative include General Electric, IBM, and Verizon Communications.

The Bridges to Excellence program was introduced in Minnesota in 2004 by the Buyers Health Care Action Group (BHCAG) . Among the twelve employers and purchasers participating in the Bridges to Excellence program in Minnesota are the Carlson Companies, the Minnesota Department of Human Services and 3M.