Value in Health
April 2020 Volume 23, Issue 4, p409-526
THEMED SECTION: VALUE-BASED CONTRACTING
Is There a Future for Value-Based Contracting?
Joshua P. Cohen
Published online: February 28, 2020
Value in healthcare is measured in terms of the patient outcomes achieved per dollars spent. As such, when payers and policy makers measure the output of healthcare systems, it is not the volume of services delivered that matters, but rather the outcomes. In light of this, there has been an uptick in interest in value- or outcomes-based contracts. These contracts are supposed to reflect pay-for-performance arrangements, which reimburse for the value a technology or health service adds when it achieves a certain level of improvement in a patient’s condition.