Defining Value in a Value-Based Healthcare Payment System
The transition from a Fee For Service (FFS) healthcare payment system to a Value-Based System (VBS) has been gathering steam for years as more payers incorporate reimbursement protocols based on patient outcomes. The Centers for Medicare and Medicaid Services (CMS) has for many years been introducing a variety of “Value Modifiers” that reward providers for superior patient outcomes, and this leadership by the largest payer in the nation has encouraged others to adopt similar payment models. In 2015, almost one-fifth of Medicare reimbursements were made through alternative payment mechanisms. Last month, the value in value-based payments entered the spotlight once again as Amazon, JPMorgan Chase and Berkshire Hathaway announced a new health care partnership. Although there were few specific details about what this new partnership intended to accomplish, there is…