What does aligning incentives mean in healthcare?

Aligning incentives in healthcare refers to creating a system where all parties involved—such as providers, patients, and payers—are motivated to work towards common goals, particularly improving patient care while managing costs. The option that states the appropriate addition of some risk in exchange for remuneration accurately captures this concept.

In many healthcare models, particularly in value-based care, providers are often incentivized to improve patient outcomes. This means that the traditional fee-for-service approach—where providers are paid solely based on the quantity of services rendered—may be adjusted. Introducing some level of risk means that providers may be rewarded for meeting certain performance metrics or patient outcomes but may also face financial consequences if those metrics aren’t met.

This concept encourages healthcare providers to focus not just on delivering services but on the quality of those services and the overall health of their patients. It fosters collaboration among stakeholders to achieve better healthcare outcomes, driving improvement while also containing costs.