CHQPR October, 2017
Health insurance will never be affordable unless the cost of health care is reduced. Although there is broad agreement that fee-for-service payment is a major reason why healthcare spending continues to grow faster than inflation, most of the “value-based payment” and “value-based purchasing” reforms implemented to date have shown little benefit. A new report from the Center for Healthcare Quality and Payment Reform – Why Value-Based Payment Isn’t Working, and How to Fix It – explains why pay-for-performance, shared savings, two-sided risk, population-based payments, and narrow networks have failed to either control healthcare costs or improve the quality of care, while creating heavy administrative burdens for providers and financial incentives to deny the care patients need. The report shows why...