The Impact of Medicare's Alternative Payment Models on the Value of Care

Posted: 7 Apr 2020

See all articles by Joshua M. Liao

Joshua M. Liao

affiliation not provided to SSRN

Amol S. Navathe

University of Pennsylvania - The Wharton School

Rachel M. Werner

University of Pennsylvania - Perelman School of Medicine

Date Written: April 2020

Abstract

Over the past decade, the Centers for Medicare and Medicaid Services (CMS) have led the nationwide shift toward value-based payment. A major strategy for achieving this goal has been to implement alternative payment models (APMs) that encourage high-value care by holding providers financially accountable for both the quality and the costs of care. In particular, the CMS has implemented and scaled up two types of APMs: population-based models that emphasize accountability for overall quality and costs for defined patient populations, and episode-based payment models that emphasize accountability for quality and costs for discrete care. Both APM types have been associated with modest reductions in Medicare spending without apparent compromises in quality. However, concerns about the unintended consequences of these APMs remain, and more work is needed in several important areas. Nonetheless, both APM types represent steps to build on along the path toward a higher-value national health care system.

Suggested Citation

Liao, Joshua M. and Navathe, Amol S. and Werner, Rachel, The Impact of Medicare's Alternative Payment Models on the Value of Care (April 2020). Annual Review of Public Health, Vol. 41, pp. 551-565, 2020, Available at SSRN: https://ssrn.com/abstract=3570366 or http://dx.doi.org/10.1146/annurev-publhealth-040119-094327

Joshua M. Liao (Contact Author)

affiliation not provided to SSRN ( email )

No Address Available

Amol S. Navathe

University of Pennsylvania - The Wharton School

3641 Locust Walk
Philadelphia, PA 19104-6365
United States

Rachel Werner

University of Pennsylvania - Perelman School of Medicine ( email )

423 Guardian Drive
Philadelphia, PA 19104
United States

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