The fee-for-service payment model has to go, experts say

The fee-for-service payment system is the number one barrier to the delivery of value-based care, according to a recent NEJM Catalyst blog post

Despite the "moral imperative" to be mindful about prescribing treatments, in the fee-for-service world, there's no incentive for providers to provide less care. In fact, 52 percent of the healthcare executives, clinical leaders and clinician members of NEJM Catalyst's Insights Council agreed that fee-for-service is standing in the way of the delivery of value-based care.

It really comes down to the proper alignment of incentives, Joel Reich, M.D., senior vice president for medical affairs and chief medical officer at Eastern Connecticut Health Network, told NEJM Catalyst. In the fee-for-service system, there's no motivation for doctors to focus on patients' long-term health, coordinate with other providers or isolate the lifestyle factors that impact patients' health, he said.

"Fee-for-service says, 'I did this, so I get paid for this,'" Reich told the publication. "There is nothing in it financially that would push people to work in a more unified manner."

Because of the value-based payment model's focus on patient outcomes, providers can focus on encouraging patients to eat healthy and exercise. And because the goal is to keep patients healthy, providers can really harness the power of community care managers and home health, in addition to telehealth services such as remote patient monitoring and telepsychiatry, according to the article.

To learn more:
- read the article

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