Innovative providers’ payment models for promoting value-based health systems
Start small, prove value, and scale up
Innovative providers’ payment models represent an important policy lever that could
be used to promote value-based health systems. By bundling services across the continuum
of care or to target acute events or chronic conditions, innovative payment models
set financial incentives for providers to increase efficiency in service delivery,
improve health outcomes and enhance patient experience with care. This paper offers
insights on value-based payment models, a type of innovative payment model implemented
in several OECD countries and reviews the publicly available evidence on the impact
of those payment models on value. Innovative payment models tend to be exceptional
and small-scale compared to activity-based payment models and have been extensively
piloted in the United States while implementation and evaluation in other countries
is limited. The publicly available empirical evidence points to modest efficiency
and quality gains from value-based payment models. Impact on healthcare spending,
outcomes and patient experience varies across programmes. Given the significant variation
in the key features of value-based payment models and the context-specific issues
they address, those models do not offer a one-size-fits-all solution. This paper outlines
several intervention points that policy makers need to consider when designing and
implementing value-based payment models to maximise their positive outcome.
Available from April 03, 2023
In series:OECD Health Working Papersview more titles