A model u.s. healthcare delivery system
In the U.S., current reimbursement and financing arrangements are heavily based on fee for service. This means that providers get paid only for services rendered. There is no fixed flat rate. This arrangement can cause overutilization, higher administrative costs and duplicated services. Additionally, the reimbursement rates for Medicare or Medicaid are often lower than that offered by commercial insurers. This means there is less access for those who need it most. In addition, patients are not able to see the prices of their care and can be confused by financial incentives that may tie to treatment. This could lead to conflicts between insurance companies and providers. In order to increase patient satisfaction and lower overall healthcare spending, value-based models of care must be seen as a way to provide care that prioritizes quality over quantity.