Alternative Payment Models (APMs)

Alternative Payment Models (APMs) are innovative ways of paying healthcare providers that aim to improve quality and reduce costs. Unlike traditional fee-for-service, where providers are paid for each service, APMs focus on value, rewarding providers for better health outcomes and efficient care. They encourage coordinated, patient-centered treatment and often involve bundled payments or shared savings arrangements. By aligning financial incentives with quality improvements, APMs seek to make healthcare more effective, affordable, and sustainable for patients and the system overall.