Healthcare fee structure: Changes ahead

Healthcare's familiar fee-based payment model is rapidly disappearing. By 2020, two-thirds of payments will be based on value measurements, up from one-third today, according to The 2014 State of Value-Based Reimbursement (registration required), published Wednesday. The study, commissioned by McKesson and conducted byORC International, was published at this week's AHIP Institute 2014 conference. Both payers and providers want healthcare to move away from fee-based payments, the study found. Today, 90% of payers and 81% of hospitals provide a blend of fee-for-service and other reimbursement models, according to the report. Payers expect fee-for-service to decrease to 32% in five years from 56% today.