Payment Model Jerdon Johnston Payment Model Jerdon Johnston

Fee-for-Service (FFS)

A traditional healthcare payment model in which healthcare providers are paid separately for each service provided to a patient, such as doctor visits, tests, or procedures. Medicare and Medicaid offer FFS options, although many states are moving towards managed care models.

A traditional healthcare payment model in which healthcare providers are paid separately for each service provided to a patient, such as doctor visits, tests, or procedures. Medicare and Medicaid offer FFS options, although many states are moving towards managed care models.

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Payment Model Jerdon Johnston Payment Model Jerdon Johnston

Global Payment

A type of payment arrangement in which a provider is paid a fixed amount for all care provided to a patient over a specified period, regardless of the actual number of services rendered. Global payment models are sometimes used in Medicare and Medicaid to improve cost control.

A type of payment arrangement in which a provider is paid a fixed amount for all care provided to a patient over a specified period, regardless of the actual number of services rendered. Global payment models are sometimes used in Medicare and Medicaid to improve cost control.

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Payment Model Jerdon Johnston Payment Model Jerdon Johnston

Risk Adjustment

A process used by health insurance companies to adjust payments based on the health status of their enrollees. It ensures that plans enrolling higher-risk individuals (such as those with chronic conditions) are compensated to maintain financial stability. Medicare Advantage and ACA Marketplace plans use risk adjustment.

A process used by health insurance companies to adjust payments based on the health status of their enrollees. It ensures that plans enrolling higher-risk individuals (such as those with chronic conditions) are compensated to maintain financial stability. Medicare Advantage and ACA Marketplace plans use risk adjustment.

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Payment Model Jerdon Johnston Payment Model Jerdon Johnston

Value-Based Care

A healthcare delivery model in which providers are reimbursed based on patient health outcomes rather than the number of services delivered. Medicare, Medicaid, and some ACA programs have adopted value-based care models to improve quality and reduce costs.

A healthcare delivery model in which providers are reimbursed based on patient health outcomes rather than the number of services delivered. Medicare, Medicaid, and some ACA programs have adopted value-based care models to improve quality and reduce costs.

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