3.5 Implications for practice
In a healthcare system characterised by persistent waste of scarce resources, there is an imperative for innovative approaches to revamp service delivery. As demonstrated in the literature, these methods have the potential to generate substantial cost reductions. Payment models that incentivise organisations to enhance cost control and outcomes offer a means to mitigate the ongoing rise in healthcare spending.
ACTIVITY
- What is the fee-for-service (FFS) payment model, and how does it work?
- What are the advantages and disadvantages of FFS payment for healthcare providers and patients?
- How does FFS payment impact healthcare costs, quality of care and patient outcomes?
- What is capitation, and how does it differ from FFS payment?
- What are the advantages and disadvantages of capitation for healthcare providers and patients?
- How do bundled payments encourage care coordination and efficiency across the continuum of care?
- Can you provide examples of healthcare services or procedures commonly reimbursed under bundled payment arrangements?
- What are the goals of accountable care organisations (ACOs), and how do they differ from traditional FFS models?
- What are the advantages and challenges of ACOs for healthcare providers, payers and patients?
- How does value-based purchasing differ from traditional FFS payment models?
- What are the key components of value-based purchasing programs, and how do they incentivise providers to deliver high-quality, cost-effective care?
