New Reimbursement Models to Eclipse Fee-for-Service by 2020

Payers and hospitals both expect fee-for-service to dramatically decrease over the next five years, according to a new study commissioned by McKesson and conducted by ORC International.

The study, titled The 2014 State of Value-Based Reimbursement, was based on survey responses from 114 payers and 350 healthcare providers.

The study found 90 percent of payers and 81 percent of hospitals currently offer a mix of fee-for-service and other reimbursement models.

The study also found payers and hospitals anticipate two-thirds of payments will be based on complex reimbursement models with value measures by 2020.

The payers and healthcare providers surveyed had different views on how value-based reimbursement models will impact the financial health of their organization. The study found 60 percent of payers believe making the transition to value-based care will have a positive financial impact on their organizations, while only 35 percent of providers believe value-based models will have a positive impact financially.

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