Health Outcome Purchasing

Health Outcome Purchasing is a way that healthcare providers and payers (like insurance companies) decide on funding and services based on the results they achieve—for example, how well a treatment improves a patient’s health. Instead of paying just for procedures or visits, they focus on ensuring patients get better health outcomes. This approach encourages providers to deliver more effective care, prioritize things that truly improve health, and reduce unnecessary treatments. Ultimately, it aligns financial incentives with patient health, aiming for better quality care and more efficient use of resources.