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We need health care models that pay for equity, not just “pay for performance”

Over the past few years, public payers like Medicare have started to prioritize payment models that reward doctors for performance, rather than for volume. This pattern is likely to accelerate with the Biden administration; recently, Dr. Elizabeth Fowler, director of the Center for Medicare & Medicaid Innovation (CMMI) said the agency was looking to make more of their value-based care models mandatory.

The movement away from fee-for-service payment in Medicare is encouraging. But as many experts have pointed out, our current value-based payment models have a huge blind spot when it comes to equity. These payment systems also don’t reward hospitals for reducing racial health disparities; in fact, they may exacerbate disparities, because safety net hospitals and hospitals caring for Black patients get financially penalized in certain value-based models.

In a recent JAMA viewpoint, Dr. Joshua Liao of the University of Washington School of Medicine, and Dr. Risa Lavizzo-Mourey and Dr. Amol Navathe of the Perelman School of Medicine provide a roadmap for how value-based payment models can prioritize and advance health equity. Here are a few of the key takeaways:

The authors acknowledge that these policies would be just a start, but they would help set the government’s intention to pay for equity. In the same way that paying for performance has become commonplace, paying for equity can be part of the payment landscape as well — if we commit to starting the work now.

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