Lowering Costs through Value-Based Care
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Fee-for-service (FFS) payment creates misaligned financial incentives for providers and leads to overspending on care delivery. Medicare has attempted to curb these higher costs by operating value-based care (VBC) arrangements through the Medicare Shared Savings Program and payment models piloted by the Center for Medicare and Medicaid Innovation.
John Barkett highlights how, despite challenges, Medicare’s VBC programs showcase tangible savings, illustrating the potential of VBC to foster long-term cost reduction in healthcare delivery.
The research and analyses performed in preparing this article were sponsored by Accountable for Health.
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