The US health system is oriented on value and quality by integrating both resource allocation and health outcomes. The sources, pay-for-performance, and value-based models are describing similar concepts of health care improvement. They describe how value-based and pay-for-performance models can be applied in health care settings to help improve the quality of care and the effectiveness of the health care providers. The two models have been introduced to help improve the quality of performance. The two payment methods share some similar characteristics and some differences.
The two payment methods are similar in certain ways. First, both models allow the provision of bonuses to the physicians, health care providers, and health care organizations to ensure performance improvement in the health care delivery. Pay for performance advocates for the rewards of the health care centers and practitioners with bonuses by cost-saving to motivate them to improve their performance efficiency. Similarly, the value-based model seeks to improve the quality of care and patient experiences by leveraging monetary value to encourage health care to initiate proper clinical practices. Also, the two models seek to punish health care and medical practitioners for practicing poor medical practices (Institute for Health Improvement, 2021). They both seek to ensure efficacy and effectiveness in health care delivery by ensuring that health care and practitioners do the right thing to improve healthcare delivery.
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However, the two techniques differ in the financial component. The value-based payment focuses on the quality of care only. It focuses on the quality of services with the health organizations and medical practitioners in the health care for the patients. Although the value-based payment allows financial penalties and bonuses, it has no requirements on the financial reporting. On the other hand, pay-for-performance is a model based on the payment of the operations in which the health care provider is incentivized for attaining certain objectives and goals. The pay for performance model depends on multiple factors, such as health organization objectives, budget, and compensation policy.
References
AAFP. (2020). Value-Based Payment . https://www.aafp.org/about/policies/all/value-based-payment.html
Institute for Healthcare Improvement. (2021) . Quality Pays Incentives for Physicians . http://www.ihi.org/resources/Pages/ImprovementStories/QualityPaysIncentivesforPhysicians.aspx
