Which payment strategy utilizes performance metrics to adjust provider payment?

Value-based reimbursement is the payment strategy that utilizes performance metrics to adjust provider payment. This approach emphasizes rewarding healthcare providers for the quality of care they deliver rather than the volume of services provided. Under value-based reimbursement, providers are evaluated based on specific metrics, such as patient outcomes, adherence to best practices, and patient satisfaction. The idea is to incentivize high-quality care, ensuring that providers are financially rewarded for effectively managing patients' health rather than solely providing more services.

This method contrasts notably with traditional models like fee-for-service, which pays providers based on the quantity of services delivered, regardless of outcomes. Capitation, on the other hand, provides a fixed payment per patient regardless of the number of services rendered, without direct links to performance metrics. Global budgeting involves setting a fixed total expenditure limit for a healthcare system but does not inherently incorporate individual performance metrics tied to provider payments. Value-based reimbursement therefore represents a significant shift toward accountability in healthcare, aiming to improve patient care and reduce costs through performance assessment.