Assignment task:
The U.S. health care system has been criticized for high cost, inefficacy, and issues with quality. Public and private payers have attempted to utilize various payment methodologies to change providers' behaviors so that higher quality of care with lower costs can be expected. Pay for performance (P4P) is an approach used to offer incentives to health care providers and organizations to achieve improved performance by increasing the quality of care and reducing costs.
For this discussion, you are taking on the role of a director of managed care contracts at the Franciscan Hospital. Your CEO asks you to hold a seminar for the newly hired employees.
In your initial post,
1. Explain four provider payment methods: (a) fee-for-service, (b) capitation, (c) global capitation or global payment, and (d) bundled payment.
2. Select one provider payment method from the above as the mainstream provider payment, and compose a detailed account of the benefits and risks from the health care providers' perspectives.
3. Evaluate the impacts of P4P on provider payment reform brought by the Affordable Care Act.
4. Appraise the health care providers' reactions to value-based payments.