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Many value-based care models have helped generate savings, reduce costs, and improve care quality, but models must incorporate health equity and clinical outcomes to achieve true value for all, according to the Association of American Medical Colleges (AAMC).
Value-based care aims to tie healthcare payments to the quality of care rather than the quantity of care patients receive. Policymakers who participate in and develop value-based care models may differ on what they consider “value” to mean, though. Some see value in both cost savings and quality, while others see value in cost savings alone.
The AAMC issue brief explores the different types of value-based care models, whether they have achieved savings, and what is missing from value-based care.
Population-based payment models, including accountable care organizations (ACOs), have been widely successful in the healthcare space. Several Medicare ACO models, which are all voluntary for hospitals and physicians, have achieved cost savings by reducing avoidable inpatient admissions and emergency department (ED) visits.
The Medicare Shared Savings Program (MSSP), the largest ACO model in the country, achieved $1.66 billion in savings in 2021, marking the fifth consecutive year the program has generated savings for Medicare.