2min chapter

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2023 Big Ideas in Technology (Part 2)

a16z Podcast

CHAPTER

The Difference Between Value-Based Care and Legacy Fee-for-Service Systems in Healthcare

The fee-for-service system is one in which providers essentially get paid for what they do. The purest form of value-based care is where providers get effectively a set budget on an annual basis to manage their patient population and any overages that you have on that budget you have to eat, but also any underages on that budget, you get to keep a share of that savings.

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