Health Affairs April 28, 2023
Two trends have transformed the health care industry in the past decade: the rise of alternative payment models and the rapid consolidation of health care providers. First, Medicare and other payers have launched a wave of experiments changing the way health care providers are paid. More than 40 million people and 314,000 providers and health plans are in alternative payment models run by Medicare’s Innovation Center, and around 11 million people and 580,000 providers participate in Medicare’s Shared Savings Program accountable care organizations (ACOs). Beyond Medicare, 40 percent of all US health care payments flowed through alternative payment models in 2021, up from 23 percent in 2015. This wave of experiments shows no signs of ebbing. In 2021, Medicare announced...
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