Payment Mechanisms

Prior to the Affordable Care Act's passage, there were few incentives for health care practitioners to provide the high-value, quality care. A significant portion of the United States health care system is based on a fee-for-service reimbursement model, thus encouraging providers to duplicate unnecessary treatment and tests for the sake of greater profits. Innovative payment mechanisms aim to not only reduce the health care expenditures, but also improve the quality of care. Accountable care organizations (ACOs), bundled payment initiatives and pay-for-performance measures are just a few examples of new payment mechanisms being tested and utilized in the United States to bend the cost curve and improve the care experience for patients.

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