Payment tied to outcomes, not just services rendered.
Value-based care shifts risk to providers by changing how they’re paid. Since 2008, the Centers for Medicare & Medicaid Services has been moving away from fee-for-service, where providers are paid for services rendered. Instead, under value-based care, CMS only pays if health outcomes actually improve. Today all of Medicare and most of Medicaid are expected to adopt a VBC model by 2030. This approach aims to focus on keeping people healthy rather than just treating sickness.
— Changing Healthcare - A Platform Approach Using Data & AI · Forbes