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42 U.S. Code § 1395cc-1. Demonstration of application of physician volume increases to group practices
(a) Demonstration program authorized
(1) In generalThe Secretary shall conduct demonstration projects to test and, if proven effective, expand the use of incentives to health care groups participating in the program under this subchapter that—
(A)
encourage coordination of the care furnished to individuals under the programs under parts A and B by institutional and other providers, practitioners, and suppliers of health care items and services;
(B)
encourage investment in administrative structures and processes to ensure efficient service delivery; and
(C)
reward physicians for improving health outcomes.
Such projects shall focus on the efficiencies of furnishing health care in a group-practice setting as compared to the efficiencies of furnishing health care in other health care delivery systems.
(2) Administration by contract
Except as otherwise specifically provided, the Secretary may administer the program under this section in accordance with section 1395cc–2 of this title.
(3) DefinitionsFor purposes of this section, terms have the following meanings:
(A) Physician
Except as the Secretary may otherwise provide, the term “physician” means any individual who furnishes services which may be paid for as physicians’ services under this subchapter.
(B) Health care group
The term “health care group” means a group of physicians (as defined in subparagraph (A)) organized at least in part for the purpose of providing physicians’ services under this subchapter. As the Secretary finds appropriate, a health care group may include a hospital and any other individual or entity furnishing items or services for which payment may be made under this subchapter that is affiliated with the health care group under an arrangement structured so that such individual or entity participates in a demonstration under this section and will share in any bonus earned under subsection (d).