How does episode-based payment improve care coordination?

Episode-based payment improves care coordination primarily by encouraging providers to manage services related to a condition. This approach ties reimbursement to the expected outcomes of a full episode of care rather than individual services or procedures. As a result, providers are incentivized to collaborate, share information, and ensure that all aspects of a patient's care—such as diagnostics, treatment, and follow-up—are well-coordinated.

By focusing on the entire episode, providers are motivated to communicate more effectively with each other and with the patients, leading to a more integrated care experience. This is particularly essential in managing chronic conditions or complex cases where multiple providers are involved. The coordination leads not only to enhanced patient satisfaction but also to potentially better health outcomes and reduced overall healthcare costs.

The other choices do not accurately depict the benefits of episode-based payment. Eliminating team collaboration would impede care coordination, while focusing solely on individual service payments does not encourage comprehensive management of patient care. Lastly, while simplifying billing might be a beneficial outcome, it is not the primary way that episode-based payment improves care coordination.