value-based payment

Value-based payment is a healthcare financing model that rewards providers—like doctors and hospitals—for delivering high-quality care that improves patient health outcomes efficiently. Instead of paying separately for each service or procedure, the focus is on the overall value: better results and patient satisfaction relative to cost. This approach incentivizes providers to be more effective and coordinated, reducing unnecessary tests or treatments, and emphasizing prevention and good management of chronic conditions. Ultimately, it aims to deliver better care at a lower total cost, benefiting both patients and the healthcare system.