In a report, Harold D. Miller, president and CEO of the Center for Healthcare Quality and Payment Reform, argues that the fee-for-service payment system and current approaches to value-based payment, including pay-for-performance, shared savings, two-sided risk, population-based payments, and narrow networks, have failed to control costs or improve the quality of care. They failed because their central focus is on how to pay providers for services or how to reduce spending for insurers, not on how to achieve good healthcare outcomes for patients at the most affordable cost for patients and insurers, the report says. Instead, this report says health insurers and other payers need to develop a patient-centered payment system that corrects the problems of fee-for-service payment while preserving its strengths.
