BUILDING BLOCKS > Provider payment

Payment Models

How are providers compensated for medical services and rewarded or penalized for performance?

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Fee-for-Service

Policy Definition: As outlined in the Health Care Learning & Action Network Advancement Payment Model Framework, fee-for-service is a payment model based on volume of services and not linked to quality of care or efficiency. source

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Value Based Care

Policy Definition: As outlined in the Health Care Learning & Action Network Advancement Payment Model Framework, fee-for-service with linkage to quality and value bases a portion of payments on the quality or efficiency of healthcare delivery. source

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Population Based Payments

Policy Definition: As outlined in the Health Care Learning & Action Network Advancement Payment Model Framework, population based payments are payments that are not triggered by service delivery, and therefore, not linked to volume. Providers are paid and responsible for the care of a beneficiary for an extended period of time. source

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