In search of model behavior
New payment approaches seek to address flawed fee-for-service system
There are many contributing factors to these high and escalating costs and inconsistent quality. The National Business Coalition on Health, along with its 54-purchaser-led business and health coalition members and other likeminded organizations, argue that the current fee-for-service system by which physicians are
According to an article in the September issue of the Harvard Business Review, Harvard professors Robert Kaplan and Michael Porter make the case that we are using the wrong pricing model. Instead of focusing on the reasons why costs are going up (i.e. growing incidence of obesity and chronic disease), we need to measure exactly what we’re paying for. The authors maintain that by analyzing costs of an episode of medical care, providers could squeeze significant inefficiencies from current care processes.
Models for payment reform