Employers, Physicians and Insurers all Moving Away from Fee-for-Service Model

The health care industry has slowly been pushing away from the traditional “fee for service” model over the past several years, embracing outcome- and value-based payment models. Now, with many health care providers struggling financially and in danger of closing permanently amid the COVID-19 pandemic, the need for a new model is ever more apparent.

“Due to COVID-19 primary care practices are on life support,” Elizabeth Mitchell, president and CEO, Pacific Business Group on Health, said in a press release. “Employers know that primary care is essential to a healthy workforce. Businesses believe now is the time to take action and harness the lessons learned from the pandemic to fundamentally reorganize primary care and reinvent our health system.”

PBGH is one of several employer groups joining the effort, the first of its kind between a primary care organization and employer coalition. The collaboration will build on the principles of advanced primary care (APC), which focuses more on quality of care and patient outcomes, as opposed to physicians being forced to rely on patient volume to meet financial needs. Read More: BenefitsPRO

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