Value-Based Payment Models in Healthcare: Challenges and Opportunities

Abstract

Payment models for health services are crucial for strategic purchasing, influencing both healthcare delivery and financing. These models vary in complexity depending on the services provided. Value-based payment (VBP) models represent a significant advancement, aiming to enhance quality and reduce costs in inpatient and outpatient settings, as well as for new technologies and medications. VBP incentivizes providers to prioritize patient outcomes over the volume of services, leading to improved care quality, cost savings, and increased stakeholder engagement. However, implementing VBP presents challenges, such as difficulties in accessing integrated health information, defining "value," and managing administrative complexities. Overcoming these obstacles is essential for realizing the transformative potential of value-based payment systems in healthcare delivery.