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Shared Savings in Value-Based Payment Models Produce More Incentives

Shared Savings in Value-Based Payment Models Produce More Incentives

April 28, 2022Victoria BaileyRevCycleIntelligencePhysician Compensation,Alternative payment models (APMs)

Value-based payment models that shared five-year expected savings offered stronger incentives for clinicians to implement preventive interventions for postpartum depression compared to models that offered shared savings over just one year, according to a study published in JAMA Network Open.

The Affordable Care Act requires most commercial health insurance plans to cover preventive services for pregnant or postpartum people at risk for perinatal depression. However, current payment models do not often properly promote these preventive interventions.

Most value-based payment models offered shared savings based on reductions in the total cost of care (TCOC), which represents how much was spent over the episode or the past year. Past-year savings prioritize short-term cost containment over long-term health outcomes that arise from effective interventions.

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: APMs, FFS, Physician Compensation, value-based payment

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