Value-based care should be explained.
Explain what value-based care is and how it differs from fee-for-service, capitated or capitated. Discuss why value-based purchasing arrangements would prove financially profitable for physician groups as well as the health insurance plan.
In value-based healthcare, doctors and hospitals are paid according to their patients’ health progress. Physicians are paid for helping patients live healthier lives, reduce the incidence and severity of chronic diseases, and improve their overall health. This is in contrast to capitated and fee-for-service healthcare, which pay providers according to their services provided (Howard 2017). The value in value-based care is measured by comparing the cost of the services provided. Value-based models of healthcare place emphasis upon helping patients to recover more quickly from illnesses and injuries, and on the prevention of chronic diseases. This results in patients experiencing improved short-term and long-term health, which requires fewer tests and doctor visits, and lower prescription drug prices. Cont…
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