Value-based payment is the new emerging model of reimbursement for healthcare services. Value based care will reimburse physicians on quality rather than the quantity under the fee-for service model.
As part of this reform, in the USA, the Center for Medicare & Medicaid Services (CMS) is working hard towards shared risk models under which healthcare providers receive performance-based incentives to share cost savings combined with disincentives to share the excess costs of healthcare delivery. This model is based on an agreed upon budget with a payer/insurer, and calls for the healthcare provider to cover a portion of costs if savings targets are not achieved.
What is your opinion on this emerging model, and what impact do you think it will have in reducing or managing healthcare cost? What are the key criteria to make this model successful?