How to get started with risk-based payment models

Value-based care is becoming increasingly popular with payers because it reimburses for outcomes rather than services putting a greater focus on the long-term health of the insured. Physicians have been slow to move away from traditional fee-for-service, but there are growing cost pressures in health care to reduce spending and payers see value-based care as the best method to address the issue.

In order to entice more physicians to make the jump to value-based contracts, payers will often offer risk-adjusted models where the physician assumes some of the financial risk, but also shares in the savings. If a practice is efficient...