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Morgan Housel's Blog: Risk-Based Care

FYI: There are few things as hard to move as the US healthcare system. It’s a $3T+ giant held at rest by a broken business model: fee for service.

A growing consensus says the solution is value-based care — a system where providers are paid based on patient health outcomes rather than the volume of services they deliver. I agree that the best shot we have of aligning incentives between payers, providers, and patients is a radical new payment model. But I think of value-based care models as a halfway point rather than the destination. Adoption of early value-based care models is worthwhile insofar as they get us closer to risk-based care, where providers get an upfront fee for each patient and then are responsible for covering the costs of caring for that patient.
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