KevinMD March 29, 2018
Matthew Hahn, MD

It is wildly popular to say that the chief culprit in the U.S. health care system is the traditional fee-for-service payment system, which rewards physicians for volume but not quality, leading to high-cost, low-quality health care. It supposedly follows that the fix is a system of “value-based” payments.

Despite the popularity of these arguments, both aspects have been shown to be wrong. Studies show that the rising cost of American health care is due primarily to rising prices, and that value-based payment systems do not reliably lower the costs of care or improve quality. In fact, despite what the “experts” say, there are many positive aspects of a fee-for-service payment system. Further, in a properly designed and...

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Topics: Health System / Hospital, Healthcare System, MACRA, Payment Models, Physician, Primary care, Provider, RCM (Revenue Cycle Mgmt), Trends, Value Based
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