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Promise of Value-Based Purchasing in Healthcare Remains to be Demonstrated

RAND Corp. reports on 10-year study

RAND Corp.
Tue, 03/11/2014 - 13:12
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(RAND: Santa Monica, CA) -- After a decade of experimentation with reforms that give health providers financial incentives to improve performance, relatively little is known about how to best execute such strategies or judge their success, according to a new report from RAND Corp.

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A comprehensive report designed to assess the state of knowledge about value-based purchasing programs in healthcare found that evidence thus far is mixed about whether using such payment schemes can help improve quality and lower costs.

Most of the research on value-based purchasing has examined the effects of pay-for-performance programs that reward physicians and other health providers for improving the quality of care or reducing costs. Research is needed to understand the impact of newer value-based payment models (e.g., accountable care organizations and bundled payments) that create stronger financial incentives for change, according to the report.

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