Value-based care is different from the current fee-for-service (FFS) model of care, which simply pays for the number of services a patient receives. These services include physician and hospital visits, procedures and tests. While value-based care pays physicians for these services, it also includes more pay for meeting quality measures, coordinating care, preventing repetitive treatments, controlling overall costs and improving health outcomes.
Physicians have many options when entering into a value-based agreement with a payor. For purposes of this report, there are three categories of payment we will refer to: fee-for-service, bonus and value-based care (which encompasses four payment models).