Should Physician Payments Be Tied to Value? An AJMC® Commentary Explores an “Appropriateness Modifier”
If the same procedure brings high value to some patients and less value to others, should reimbursement reflect the difference? Authors led by Harvard’s Zirui Song, MD, PhD, introduce the idea of a modifier to adjust payments based on indication and appropriateness in
But authors writing in The American Journal of Managed Care® say that’s not so in healthcare, where a coronary stent for unstable angina is reimbursed at the same rate as one for stable angina, even though the first case likely brings higher value. Of course, each patient and situation is different, and there’s the challenge: how can the current trend toward value-based care create incentives for essential tests and procedures while not simply discouraging procedures across the board?
In the current issue, Zirui Song, MD, PhD, of
An appropriateness modifier would be based on both the indication and a patient’s characteristics, such as comorbidities. The authors acknowledge the concept has advantages and limits, but it has one clear plus: it can co-exist with both fee-for-service (FFS) and alternative payment models as the healthcare system transitions to new forms of reimbursement, which most experts say is taking longer than expected. And cost-sharing for patients could go up and down, too, with patients paying less if a procedure was highly appropriate.
The authors outline four elements: (1) the appropriateness modifier could start with services “for which clear differences in appropriateness are observable and supported by guidelines,” (2) the modifier could be built into FFS models without downside risk, (3) unlike bundled payments and steps that limit use, the appropriateness modifier doesn’t limit treatment options, and (4) specialists retain control rather than relying on referrals from primary care.
Despite the challenges, the authors write the conversation is worth having. “Moving American medicine toward value for populations, yet precision for individuals, will require innovations in payment and delivery. Incorporating a clinically nuanced measure of appropriateness into payment and benefit design could offer a meaningful next step,” the authors write.
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