We all know that the United States is in the process of radically changing how it pays for healthcare. And that’s because nearly all experts agree that the prevailing current payment method—fee for service—fuels waste, and does nothing to promote high-quality care.
In an effort to drive quality and reduce waste, there have been ongoing efforts by both the federal government and private insurers to reform payments, which have produced some success along the way.
What is the best approach to replace fee for service? The Harvard Business Review recently asked that question and presented the two leading economic models that are contending to replace fee for service.