Which payment model focuses on rewarding providers for improving patient outcomes?

The payment model that focuses on rewarding providers for improving patient outcomes is Pay for Performance. This approach is designed to financially incentivize healthcare providers by linking their reimbursement to the quality of care they deliver, specifically how well they achieve certain performance metrics related to patient health outcomes.

In this model, providers may receive bonuses or increased payments when they meet or exceed pre-established criteria, such as reducing hospital readmission rates, improving patient satisfaction, or achieving specific health outcomes. The primary goal of Pay for Performance is to encourage healthcare providers to enhance the quality of services they provide, ultimately benefiting patients by promoting better health results.

By concentrating on the outcomes of care rather than merely the volume of services provided, this model aligns the interests of providers with those of their patients, fostering a healthcare environment focused on effective treatment and preventive care.