Value-based payment: Will it cover the cost of doing business?

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Value-based payment models aim to enhance healthcare quality and cost-efficiency, yet their financial sustainability for independent practices is uncertain.
Physicians are cautious about adopting these models due to concerns over covering operational costs and financial risks.
Barriers include financial risk, administrative burden, and insufficient incentives, deterring primary care practitioners from joining value-based models.
Potential solutions involve providing better support, risk adjustment, and aligning incentives to encourage participation in value-based care.

A physician researcher discusses why primary care physicians do not participate in value-based payment models.

Will value-based payment models cover the costs of operating an independent medical practice? Doctors are cautious because they are unsure that model will do so. Ann S. O’Malley, MD, MPH, a researcher for Mathematica, explains some of the financial findings of the study, “Why Primary Care Practitioners Aren’t Joining Value-Based Payment Models: Reasons and Potential Solutions.”