Abstract
Progress has been made; a transition from fee-for-service to a payment system gives hospitals and health systems an incentive to jump onboard. Providers involved in ACO are adopting a pay-for-performance model that reimburses physicians on a number of metrics including patient safety and outcomes, care quality and cost of care. In 2014, CMS held back 1.25% of Medicare reimbursements at hospitals under the new Medicare inpatient prospective payment system. The cost saving, which is estimated to be $1.1 billion, will be dispersed to hospitals based on their performance on various healthcare quality measures [1]. Health insurers are also joining the push for performance-based systems. United Healthcare, a leading health insurance provider, plans to double its value-based contracts with providers.
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