How a Hospital or Health System Can Assess the Risk of Moving to Value-Based Payment

Health systems considering a strategic move away from the traditional fee-for-service (FFS) payment model to value-based payment approach can benefit from modeling the risks and likely effects of such a move.

Health systems across the country are struggling to maintain their overall profitability and operating margins. Organization leaders realize they must take a hard look at their existing models to maintain their financial performance in the face of shifting payer mixes and stagnating payments as the industry moves from fee-for-service (FFS) to quality-based payment.

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