Traditional models of reimbursement for health care are transitioning from payment per visit or test ordered to payment for the value they deliver. Value-based reimbursement and bundled payments are two of these current payment methodologies. These changes to reimbursement are considered by many as long overdue as they are now driving improvements in care and attempting to reduce costs.

Compare and contrast value-based or bundled payments to those of traditional fee-for-service or capitated plans. What are the main differences between the two approaches to payment?

In your post, include the following:

• Description of the historical payment methodology.
  • How were payments determined?
  • How were the providers incentivized?
• Description of one of the current payment methodologies.
  • How are the payments determined?
  • How are the providers incentivized?
• Which methodology, historical or current, do you think is superior? Why?