The Urban Institute and the Catalyst for Payment Reform have collaborated on a series of briefs about various forms of health payment reform. Over the summer we’ll look at some that are receiving a lot of attention from policymakers and payers. Let’s start with capitation.
There are advantages and disadvantages of capitation, just like in any health care payment system. Some of the advantages are intended to reduce costs and increase quality of care: Managing a capitation system can be easier and more cost effective because the only thing to keep track of are the number of enrolled members.
Capitation is a type of a health care payment system in which a doctor or hospital is paid a fixed amount per patient for a prescribed period of time by an insurer or physician association.
The Advantages of Capitation Over Fee-For-Service
In this series, William Rusnak, MD, provides some quick insight into several models and discusses the pros and cons of each. William’s last article focused on Accountable Care Organizations. One of the biggest problems with the current healthcare system is the fee-for-service model. Not many would argue against that point.
Pros and Cons of various payment models and their effect on practices. The Obamacare healthcare reforms or formally known as the Affordable Care Act(ACA) was ushered in 2010 with the aim of changing the way the medical practitioners were paid so as to focus on higher quality at lower costs- the bottom line was to improve value of medical treatment.
The Pros and Cons of Bundled Payments . Posted on CarpeVITA Admin; in Healthcare Reform; on September 1, 2015; No Comments. On July 9 th, The Obama administration announced its plans to mandate bundled payments for joint replacement surgery when paid by Medicare. This is the first step in the bundled payment model and it is starting in Indianapolis, Evansville, South Bend and 72 other …
(For more information on different healthcare payment methods, see Better Ways to Pay for Health Care: A Primer on Healthcare Payment Reform .) Trying to weigh the pros & cons and pick the “best” payment method is a flawed approach, particularly at this very early stage of healthcare reform.
Capitation is still present in certain HMO-intensive markets, such as California, Minnesota, and the Northeast. Translated into a compensation model, capitation involves distribution of health plan payments among physicians in a nearly equal manner or based on some type of formula. Pros and cons.
Pros and Cons of Universal Health Care Healthcare is a basic need of every human being. It should be considered a basic human right, in which the nation ensures that every person is covered by equal healthcare, regardless of age, gender, or income.
Under a prospective payment plan, a healthcare provider will always receive the same payment for providing the same specific type of treatment. Prospective payment plans have a number of benefits.