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SUD Treatment Providers Embrace Alternative Payment Models, Ditch Fee-For-Service

February 20, 2024Morgan GonzalesBehavioral Health BusinessBehavioral/Mental Health Services,VBC Development, Growth & Expansion,Alternative payment models (APMs),Substance Use Disorders & Treatment

Fee-for-service reimbursement models have contributed to a fragmented behavioral health industry. Substance use disorder (SUD) providers are set to evolve current reimbursement models to alternative payment systems in 2024.

Alternative payment models, which include risk-bearing, bundled payments and shared savings, offer a brighter future for the industry. But taking on risk and working with payers to develop alternative payment models requires strategizing and careful discussion with payer partners, industry insiders told Behavioral Health Business.

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