Medicaid costs continue to rise and are a primary long-term cost driver for states. At the same time, there is an acute awareness that the quality outcomes that states and their citizens get for their dollars are less than optimal. To impact rising costs and realize quality improvements, transparency of costs and outcomes is essential. Without insight in whether value is high or not, providers, payers, and policy makers are limited in their ability to control costs, and patients cannot make fully informed choices.
For these reasons, the KPMG Government Institute, in conjunction with KPMG’s Global Human & Social Services Center of Excellence conducted research into the use of an All Payer Database, or APD, as a tool to support healthcare cost savings and quality outcomes. We augmented our research with extensive experience working with state healthcare systems and APDs. This white paper addresses the why, what, and how of APDs and provides our perspectives on next steps for states to consider in moving to an APD solution.