Motley Fool April 4, 2015
The recent announcement from Humana (NYSE: HUM) that it’s launching two businesses to help physicians “transition from fee-for-service to value-based reimbursement models” is the latest effort in the health-insurance industry to prepare doctors for the new world of population health. Value-based reimbursement is tied to health outcomes, doctor performance, and related quality metrics.
From a business point of view, much is at stake in this transformation of the healthcare reimbursement system. Insurance companies stand to make more money through population health efforts as long as the doctors and hospitals in their networks are achieving the established quality measures while lowering healthcare costs.
However, a RAND Corp. study backed by the American Medical Association this month said physicians don’t have what...
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