decisionhealth Newsletters, Part B News - 2018 Issue 1 (January)
As value-based wave breaks, 4 options for practices still stuck in fee-for-service
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Article Overview
This article discusses the ongoing move from fee-for-service toward value-based reimbursement and outlines broad strategies practices may consider as the market changes. It is aimed at physicians, practice leaders, and administrators evaluating whether to remain independent, join larger networks, or explore alternative payment arrangements. The piece also touches on how public and private payers are encouraging practice transformation through different kinds of reimbursement models and incentive programs.
Why This Topic Matters
The transition in reimbursement affects practice finances, contracting, infrastructure needs, and long-term viability. Readers can use the article to understand the general landscape and to compare high-level organizational responses without needing to navigate the broader value-based payment trend blind.
Article Sections
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Pay for performance
Introduces the broader shift away from fee-for-service and summarizes the reimbursement environment across Medicare, private payers, and practice surveys. It frames the growing role of alternative payment models and value-based contracting.
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FFS days are numbered
Discusses the pressures encouraging practices to move toward alternative payment structures and the general incentives influencing provider behavior. It focuses on the market context rather than specific coding or billing mechanics.
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What to do?
Outlines broad strategic options for practices that have delayed participation in value-based reimbursement. The section presents organizational and operational paths that different practices may consider based on their resources and goals.
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Quit.
Covers the option of remaining in fee-for-service for practices nearing retirement or otherwise planning to exit soon.
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Go DPC.
Describes direct primary care and other cash-based practice approaches as alternatives to third-party payer participation.
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Join up.
Explains the general idea of aligning with larger organizations or networks to support value-based participation and related infrastructure needs.
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Experiment with low-impact programs.
Reviews the concept of limited-risk or upside-only programs as entry points into value-based reimbursement and practice transformation.
What You Will Learn
- How the value-based reimbursement trend is changing the payer landscape
- What broad organizational options practices may consider when moving away from fee-for-service
- Why practice infrastructure and analytics matter in alternative payment models
- How payer incentives and pilot programs can support gradual transition to outcomes-based care
- What kinds of organizations and programs are commonly discussed in the context of practice transformation
Who Should Read This
- Physicians
- Medical practice owners
- Practice administrators
- Healthcare executives
- Revenue cycle and reimbursement professionals
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