Becker's Healthcare March 18, 2025
Physician compensation is due for transformation as the traditional models based on fee-for-service payments and work relative value units misalign incentives and add unnecessary complexity.
“[Fee for service] remains the dominant system in the U.S. paying physicians and hospitals a set fee for each healthcare service provided. This approach rewards volume of services rather than quality and clinical outcomes,” Stephen Parodi, MD, executive vice president of external affairs, communications and brand of The Permanente Federation and The Permanente Medical Group based in Oakland, Calif., told Becker’s. “Unfortunately, the current approach is leading to higher costs and worse outcomes.”
Physician leaders across the country are running into similar challenges and are ready for a change. But any change is hard.
“The...
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