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Policy Playbook: Value Based Reimbursement

In the past, hospitals were paid on a per diagnosis basis, also known as “Fee for Service”. This meant a hospital was paid based on volume with minimal consideration as to the patient’s outcome. With skyrocketing healthcare costs, healthcare reimbursement is changing to a “Value Based” system. 

The new reimbursement programs aim to reduce health expenses and increase quality by: (1) ending payments based solely on volume and (2) rewarding top-performing hospitals that produce better outcomes for patients.

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