Shared Savings in Value-Based Payment Models Produce More Incentives

April 28, 2022Garrett SchmittAPMs, FFS, Physician Compensation, value-based payment

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…

Key Advantages of Medicare Advantage Plans Versus FFS Medicare

April 20, 2022Garrett SchmittNo CommentsBMA, fee-for-service, FFS, Medicare, Medicare Advantage

Medicare Advantage plans may provide better access to care and lower healthcare spending for enrollees, compared to fee-for-service Medicare, according to a study from ATI Advisory conducted on behalf of Better Medicare Alliance (BMA). “Medicare Advantage continues to demonstrate that it offers important cost protections and value for Medicare Advantage beneficiaries,” said Allison Rizer, principal at ATI Advisory…

Value-Based Payment Models Associated with Lower Acute Care Use

March 22, 2022Garrett SchmittAPMs, FFS, MA, Medicare Advantage, Physician Compensation, value-based payment

Medicare Advantage beneficiaries whose primary care organization participated in a value-based payment model saw lower rates of hospitalizations, observation stays, and emergency department visits, according to a study published in JAMA Network Open. Value-based payment models incentivize providers to deliver quality care while keeping healthcare spending low. As stakeholders see positive results, Medicare and Medicare Advantage plans have shifted toward…

NAACOS, APG Urge HHS to Adjust Direct Contracting Model, Not Cancel

February 16, 2022Garrett SchmittAMA, APMs, CMMI, congress, DCEs, direct contracting, FFS, HHS, NAACOS

More than 200 healthcare organizations, including America’s Physician Groups (APG) and the National Association of ACOs (NAACOS), have urged the Department of Health and Human Services (HHS) to make adjustments to the Global and Professional Direct Contracting Model instead of canceling the program. In a letter to HHS Secretary Xavier Becerra, the groups stressed that shutting down the Direct…

Trends in Characteristics of Fee-For-Service Medicare and Medicare Advantage Enrollees

February 14, 2022Garrett SchmittFFS, Medicare, Medicare Advantage

Medicare Part C (Medicare Advantage) enrollment has grown more rapidly than fee-for-service Medicare Enrollment in the last decade, raising questions about changes in the characteristics of different enrollee populations for Medicare Part A only, Medicare Part A & B and Medicare Part C. Microsoft’s Precision Population Health Group partnered with CareJourney to advance understanding of…

Provider Collaboration Needed to Drive Patient Experience, ACO Success

February 9, 2022Garrett SchmittAPMs, direct contracting, FFS, Interoperability, provider collaboration

In order to ensure accountable care organization (ACO) and patient experience success, providers must collaborate across the continuum of care, suggested a recent study out of the Ohio State University Fisher College of Business. “We found that if an ACO wants to be successful, it needs representation across all parts of a patient’s continuum of care,”…

Volume vs. value: Physician compensation models slow to adapt

February 2, 2022Garrett SchmittAPMs, FFS, Physician Compensation, value-based payment

Despite the promise of value-based care, the current compensation structure continues to incentivize physicians for volume. A payment hierarchy exists in the U.S. health care system. Reimbursement mechanisms used by payers create incentives for health systems and physician organizations. In turn, these organizations create incentives for physicians through compensation packages, which may or may not…

Physician Compensation Still Hinges on Volume at System-Owned Practices

February 1, 2022Garrett SchmittAPMs, FFS, Physician Compensation, value-based payment

Despite a decades-long push toward value-based payment, physician compensation arrangements at health system-owned practices still primarily revolves around the volume of services delivered, according to a new study from RAND Corporation. The study recently published in JAMA Health Forum examined physician compensation structures at 31 physician organizations affiliated with 22 health systems in four states….

Most health systems still base doctors’ pay on volume, despite push toward value-based care: study

January 28, 2022Garrett Schmittalternative payment models, APMs, fee-for-service, FFS, value-based care, value-based payment, vbc

Despite the growth in value-based payment arrangements from payers, health systems continue to pay physicians based on the volume of services they provide. A new study published in the journal JAMA Health Forum finds that volume-based compensation was the most common type of base pay for more than 80% of primary care physicians and for more…

The Case For ACOs: Why Payment Reform Remains Necessary

January 24, 2022Garrett SchmittACO, ACOs, FFS, GPDC, value-based care, vbc

Medicare population-based payment models, broadly known as accountable care organization (ACO) models, of which the Global and Professional Direct Contracting Model (GPDC) is an example, were launched out of recognition of two largely inherent weaknesses of fee-for-service: FFS does not promote efficiency, nor does it promote equity. The Centers for Medicare and Medicaid Services (CMS)…

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