Value-Based Payment and Health Care System Preparedness and Resilience
Published in: Office of the Assistant Secretary for Planning and Evaluation website (2021)
Posted on RAND.org on October 07, 2021
The coronavirus disease 2019 (COVID-19) pandemic has had significant impacts on the health care sector. Health care providers have been on the front line treating COVID-19 patients. At the same time, the health care industry has faced a severe reduction in utilization of non-COVID health services in the early stages of the pandemic, causing substantial financial impacts and prompting significant changes in the delivery of care. The response to the pandemic and its effects has varied across providers. While many factors contribute to these differences, some may be related to the different models of payment under which providers operate. As the health care industry shifts toward a greater use of value-based payment (VBP) models, which tie provider payments to performance based on cost and quality metrics with the goal of improving the quality of care and efficiency, it is important to better understand the relationship between VBP policy and health care disaster preparedness and resilience. In this report we explore issues related to VBP and health system preparedness and resiliency in an effort to inform discussions about policy options for jointly promoting value, efficiency, and preparedness in the health care system.