New payment models key to improving health system performance

As health systems around the world strive to improve health care value, one of the most fundamental obstacles I regularly see that they face is the way that individual clinicians and provider organizations are paid for the care they deliver.

This latest paper from my colleagues and I explores the key success factors to implement value-based payment models at the level of an entire health system, knitting together individual payment models into a comprehensive and coherent system-wide payment regime.

Drawing on our review of 30 value-based payment initiatives worldwide and the growing scientific literature about payment models, this paper considers public and private payers covering single provider organizations and multiple organizations. In addition to creating a clear and consistent taxonomy of value-based payment models, the paper identifies best practices both within and across models, common system challenges and the evolutionary approaches to overcome them.

You can find the details in “Paying for Value in Health Care.” https://www.bcg.com/publications/2019/paying-value-health-care.aspx