Question

1. There has been a shift in health financing from paying for quantity to paying for quality. Briefly describe what is meant by value-based payment and alternative payment methods? What are the incentives placed on healthcare providers and how do they differ from fee-for-service?

Answer 1

Value Based Payment (VBP) is a concept by which purchasers of health care (government, employers, and consumers) and payers (public and private) hold the health care delivery system at large (physicians and other providers, hospitals, etc.) accountable for both quality and cost of care.

Alternative payment methods in healthcare are :-

1. Premiumt - the cost you pay each month for the insurance policy

2. Deductible the amount the patient pays for a medical service before the insurance company pays

3. Co-insurance - percent of expense shared by the patient

4. Co-payments -specific amount a patient pays for a particular service

5. Employer-sponsored (group insurance)- employer assisted health insurance coverage for employees. employer often pays part of premium

6. Private insurance - purchased by an individual, sometimes called a 3rd party payer

#. Incentives placed or given to the healthcare providers are :-

- rewards and gifts

- promotion of post

- increment in salary

- transfer to location chosen by staff

They are different from fee for service as the fee for service is the amount paid to them for their services provided to the Organization and Patients . Incentives are the additional facilities in terms of rewards , gifts ,promotion etc given to the healthcare workers for their incredible work and services.