Health Care Payment Reform Examined

Chad Krcil
Director, Health Care Consulting

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Payment reform based on the Affordable Care Act (ACA) is a series of reforms expected to slow growth in Medicare spending while simultaneously strengthening care provided to Medicare beneficiaries.

These reforms build upon the existing value-based purchasing efforts currently underway with the Centers for Medicaid and Medicare Services (CMS), designed to better coordinate patient care and reduce unnecessary services, and to lower Medicare spending while inspiring quality of care through an integrated delivery system.

The current Medicare payment system focuses on volume-based and productivity streams of revenue. Payment reform intends to transition from this system to a payment system based on value-based patient-centered payment models with a focus on limiting cost and improving care.

This type of transition to patient-centered care will involve Accountable Care Organizations (ACOs), bundled payments and value-based purchasing efforts. These payment reform changes will be discussed further in this white paper.

For more information on this issue, contact your local representative or Chad Krcil at 303.298.6463.