Numerof & Associates November 1, 2024
Successful value-based contracting between healthcare insurers and care delivery organizations is critical to the transition towards a more sustainable healthcare system. As healthcare costs continue rising, there is an urgent need to realign payment models to reward providers for efficiency and optimal patient outcomes rather than fee-for-service care volume.
Value-based contracts enable this transition by establishing shared accountability between payers and providers for the total cost and quality of care for a defined patient population. When structured properly, these arrangements encourage care coordination, investment in primary care and prevention, and...
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