Discussion 8.1: Value Versus Volume Purchase and Design

Value Versus Volume Purchase and Design Student’s Name Institution Course Code: Course Name Professor’s Name Submission Date Fee-for-service (FFS) and value-based payment (VBP) represent two philosophies: one that focuses on volume and the other on value. FFS reimburses providers for every procedure or consults performed without regard to the quality of care provided or the outcomes of patients. On the other hand, VBP bases compensation on the quality and efficiency of care delivered, aiming at improving patient outcomes while controlling costs. While FFS creates an incentive to utilize more services, VBP incentivizes prevention, coordination, and efficient use of resources (MacGillivray, 2020). VBP holds more significant potential for financial increase because it aligns provider incentives with cost savings and enhanced quality, from which considerable financial benefits may result through systems of shared savings or value risk-based contracts. Some of the key competencies that are required to practice VBP include robust data analytics for performance tracking and patient outcomes, infrastructure in care coordination to manage diseases effectively, evidence-based clinical protocols to standardize how care is delivered, investments in health IT systems, and electronic medical records (EMRs), among others, for population health management (MacGillivray, 2020). These systems support risk adjustment, patient engagement, and timely decision-making. Moreover, the continued nurturing of interdisciplinary teamwork a...