What type of payment model focuses on overall patient outcomes rather than individual services?

The value-based payment model is designed to prioritize overall patient outcomes instead of paying for individual services performed. This model incentivizes healthcare providers to improve the quality of care and patient satisfaction by linking reimbursement rates to the effectiveness of care provided, including health outcomes and efficiency. In this approach, healthcare providers are rewarded for the overall health improvements of their patients, rather than just the volume of services rendered.

This model contrasts with fee-for-service, which compensates providers for each specific service delivered, regardless of the care's impact on patient health. Similarly, retrospective and prospective payment models focus on service provision in different ways — retrospective payments are based on actual costs incurred after care is delivered, while prospective payments are established in advance based on expected costs or case mix. However, neither one places the same emphasis on the overall outcomes and quality of care as the value-based model does.