Advanced Alternative Payment Models (APMs)

Advanced Alternative Payment Models (APMs) are innovative healthcare payment systems designed to improve quality and reduce costs beyond traditional fee-for-service methods. They encourage providers to deliver coordinated, efficient care by rewarding better health outcomes and cost savings. Examples include bundled payments for a full episode of care or accountable care organizations that share financial risks and rewards. Essentially, APMs aim to shift focus from volume of services to value, promoting care that is effective, patient-centered, and financially sustainable for both providers and the healthcare system.