Which payment model encourages providers to work together for better patient outcomes?

The bundled payment model is designed to encourage providers to collaborate effectively to enhance patient outcomes. In this model, a single payment is made for all the services required for a specific treatment or condition over a designated period. This approach motivates healthcare providers to work together, coordinating care across different specialties and settings, as they share the financial responsibility for the patient's overall health outcomes.

By aligning the financial incentives within a bundled payment framework, providers are encouraged to minimize unnecessary tests and procedures, streamline care delivery, and focus on achieving better health results. This collaborative nature of care fosters communication and teamwork among healthcare professionals, ultimately benefiting patients through improved quality and continuity of care.

In contrast, other models like the fee-for-service approach can incentivize providers to deliver more services, regardless of necessity, which may not always lead to the best patient outcomes. The capitation model pays a fixed amount per patient and can lead to under-service if not managed carefully. The self-pay model does not encourage collaboration between providers as it primarily pertains to direct payments by patients for services rendered.