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August 2017

Outcome Measurement in Value-Based Payments

Author Affiliations
  • 1University of Michigan Health System, Ann Arbor
  • 2Memorial Sloan-Kettering Cancer Center, New York, New York
  • 3The University of Texas MD Anderson Cancer Center, Houston
  • 4Institute for Strategy and Competitiveness, Harvard Business School, Boston, Massachusetts
JAMA Oncol. 2017;3(8):1019-1020. doi:10.1001/jamaoncol.2016.5375

Value in health care, the balance between outcomes that matter to patients and the costs required to achieve them, is being increasingly recognized as a path to health care reform. The Department of Health and Human Services recently announced its intention to tie 50% of traditional fee-for-service payments, made by the Centers for Medicare and Medicaid Services (CMS), to value or quality through alternative payment models (APM), including accountable care organizations (ACOs) and bundled payments, by 2018.1 The Centers for Medicare and Medicaid Services is also paying special attention to cancer care, since it accounts for nearly $125 billion in medical spending and data reveals wide variations in the cost of care delivered with no relation to survival.2

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