Paying for results, not treatments
Monday, December 31, 2012 - 12:30
in Mathematics & Economics
New models that change the improper incentive in fee-for-service Medicare promise significant savings, but there are big issues still to work through.One of the fundamental problems in the U.S. healthcare system is that the most common and straightforward payment method — paying a fee for each service rendered — encourages doctors and hospitals to provide more care, not better care. In fact, it discourages efficiencies that lead to healthier patients at lower cost because they translate into lower incomes for those providing the service.