Healthcare reimbursement is the payment that healthcare providers receive for giving medical services. Value-based reimbursement is one of method of rewarding healthcare providers. The main aim of this model is to reduce the increasing costs by basis reimbursement on the quality of service. Value based reimbursement approach creates a balance between efficiency and effectiveness in delivery of medical care. Under this model, healthcare providers are compensated under a fee-for-service model which incorporates quality and efficiency(Terrell & Bobbitt, 2019). This is the most unique element of value-based reimbursement. It applies pay for performance arrangement to create incentives to the providers. It encourages better decision making by tying compensation to the agreed performance measures. This ensures improvement in quality of care to meet the expected outcomes and performance required by the model. It focuses on the tangible improvements in clinical outcomes. The performance measures utilized in this method are evidence-based, clinically relevant and aligned across all the payers.

Value-based reimbursement is flexible in a number of ways. It responds to the community needs, preferences and resources. It is also responsive to individual patient preferences. The provision of services is based on individual care and must support the needs of individual patients. This begins by attributing patients to their primary care physician. when patients have complex or multiple conditions, the primary care physician is required to collaborate with any specialists to ensure timely and effective coordination of care.

This method of care uses reliable, accurate and valid data to compensate the providers. It is a way to cap costs and spread financial risks among the providers. This encourages coordination of care and better management of chronic illnesses. Therefore, healthcare providers work together to provide high quality coordinated care to their patients. This model rewards quality over volume(Terrell & Bobbitt, 2019).

Reference

Terrell, G., & Bobbitt, J. (2019). Value-based healthcare and payment methods. American        Association for Physician Leadership.