Payment Designed for People: Introducing the Primary Care Outcomes Model
Early data shows that alternative payment methods (APMs) such as Alternative Quality Contract or Medicare Accountable Care Organizations (ACOs) have been associated with lower spending on healthcare and improved use of healthcare resources. However, both of these APMs have produced only modest cost reductions in Medicare spending. Why? Because these models fail to leverage behavioral economics to maximize the impact of incentive dollars on changing physicians’ way of practice. Furthermore, they offer “relatively small rewards with delay and uncertainty while being complicated by too many metrics.” In...