Physicians have long been in the business of providing medical care to their patients. But in today’s ever-changing healthcare landscape, reimbursement models are changing, too.
While the traditional fee-for-service model is still widely used, there are other options that could potentially benefit your practice. Let’s take a closer look at some of these alternative reimbursement models and how they might work for your practice, as explained by Dr Lou Hampers, a renowned MD, MBA, and pediatrician.
Value-Based Reimbursement Model
The value-based reimbursement model is based on outcomes instead of services rendered. Under this model, providers are paid based on the quality of care they provide and incentivized to keep costs low.
This type of payment model can be beneficial for both physicians and patients; it encourages providers to focus on preventive care and patient engagement, which can result in better health outcomes overall.
The capitation model is similar to the value-based reimbursement model in that it focuses on preventive care and emphasizes cost containment over fee-for-service payments.
However, under the capitation model, physicians Lou Hampers receive a set amount per patient over a certain period of time—regardless of what services they provide or how many times they see that patient during that period—to cover all of the patient’s healthcare needs throughout that time frame.
The goal of this type of payment model is to ensure that patients get the care they need without having to worry about up-front costs or surprise bills down the line.
So, while traditional fee-for-service models may still be the most widely used in healthcare today, exploring alternative reimbursement models could benefit your practice.
As you can see, there are several viable alternatives to traditional fee-for-service reimbursement models available for physician practices today. It’s important to do your research and consider all your options before deciding which reimbursement method is right for your practice.
With careful consideration and thoughtful planning, you can find an alternative reimbursement system that works best for you and your patients alike.