As policy makers seek to slow the growth in Medicare spending, they have appropriately focused attention on beneficiaries with multiple chronic conditions. Many care coordination and disease management programs designed to improve beneficiaries' care and reduce their need for hospitalizations have been tested, but few have been successful. This study, however, found that four of eleven programs that were part of the Medicare Coordinated Care Demonstration reduced hospitalizations by 8-33 percent among enrollees who had a high risk of near-term hospitalization. The six approaches practiced by care coordinators in at least three of the four programs were as follows: supplementing telephone calls to patients with frequent in-person meetings; occasionally meeting in person with providers; acting as a communications hub for providers; delivering evidence-based education to patients; providing strong medication management; and providing timely and comprehensive transitional care after hospitalizations. When care management fees were included, the programs were essentially costneutral, but none of these programs generated net savings to Medicare. Our results suggest that incorporating these approaches into medical homes, accountable care organizations, and other policy initiatives could reduce hospitalizations and improve patients' lives. However, the approaches would save money only if care coordination fees were modest and organizations found cost-effective ways to deliver the interventions. M edicare's rapidly increasing costs have led policy makers to focus on improving the coordination of care for people with high-cost chronic conditions, for several reasons. First, beneficiaries with such conditions account for a disproportionately large share of total Medicare spending. 1 Second, ample opportunities exist to improve the care they receive.2-4 Studies of care coordination have noted the high proportion of preventable hospitalizations arising from inadequate or inappropriate care, poor patient adherence to recommended medication and selfcare regimens, and poor communication among the many providers whom a patient with chronic conditions typically sees.
2-9Despite the apparent opportunity to control spending by reducing the need for hospitalizations among such beneficiaries, several demonstrations by the Centers for Medicare and Medicaid Services (CMS) to test disease management and care coordination programs in fee-forservice Medicare have been largely unsuccessful. 8,9 Most of these unsuccessful programs are telephone-only interventions that develop and update care plans to meet patients' needs, educate patients about self-care and medication