Changing Health Care Payment Structures

Value-based payment methods effective only if entire care team is trained

Photo of a physician's hands typing on a keyboard; stethoscope on desk
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Value-based care is a health care payment structure that shifts the focus away from the traditional fee-for-service model that compensates clinicians based on the number of their patient visits. With the VBC model, physicians are paid based on the total number of patients in their roster, also commonly referred to as a patient panel.

The advantage behind this model, proponents say, is that it allows physicians to dedicate more time to those who need it most, including vulnerable patient groups and people who live with chronic conditions. With the VBC model, appointment times for these patients could be as long as an hour without affecting the physician’s pay.

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The VBC model has been discussed among health care leaders for years, and many health systems have begun implementing changes toward a VBC payment structure as a viable step toward health equity and solving issues of physician burnout.