Because Cleveland Clinic's doctors are paid fixed salaries, there is less incentive to order unnecessary tests or procedures compared to a doctor working on his or her own who receives a bump in their fee.

As of right now, Medicare acts a lot like those traditional hospitals do, Thorpe said. "If you take the typical patient who is chronically ill, they will be overweight or obese, they suffer from bad cholesterol, hypertension, asthma and diabetes -- that means they take 10 to 15 medications and there is no team-based care," he said.

"Going to separate doctors with their own plans is expensive. These integrated group plans work well and the ongoing preventive care they provide -- working with doctors, nutritionists, nurses, nurse practitioners and the rest -- ultimately save on costs."