Fee for Service–Part of the problem

We have perverse incentives that increase utilization and health care costs. Consider this:

“Millions of patients each year leave the hospital only to return within weeks or months for lack of proper follow-up care.”

“In fact, because insurers typically pay hospitals to treat patients – not to keep them away by keeping them healthy – hospitals can actually lose money by providing better care. Empty beds mean lost revenue.”

The question is how to align incentives to encourage prevention, efficiency and quality care.

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