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Value-Based Purchasing and Bundled Payments

Research by Lee Ann Jarousse

Payment based on quality and service is not a new concept, but it's finally coming into play in health care. Delivery system reforms included in the Patient Protection and Affordable Care Act provide incentives for health care organizations to improve care coordination and quality and reduce costs—and penalties if they fail to do so. These provisions include pilot projects to test bundled Medicare payments and new value-based purchasing regulations. The goal is to create integrated delivery systems that are more accountable to their communities and to make providers assume greater financial risk.

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