The Rise of Value Based Payment Models

A lot of the reason that health care business models were not resilient during the pandemic was that they were entirely fee for service oriented, meaning you only got paid for the specific services that you delivered. Value based payment models tend to be much more bundled in nature. So like a need for placement surgery would be rather than charged for every individual, you know, doctor who's involved in the procedure, the anesthesia, all the pre visit post visit stuff. And so it aligns incentives for the provider and the patient in terms of staying within certain bounds,. but also creates a lot more resiliency around the payment flows into the provider practice.