The “Value” of Oncology Care


In an effort to emphasize healthcare quality over quantity, more than 400 oncology practices joined a new federal payment system which shifts cancer treatments from a fee-for-service model to a value-based model.

The motive behind this system is to ensure that patients are properly screened ahead of treatment; once treatment is complete, healthcare providers will be paid based on a patient’s wellbeing. Providers are entitled to incentives based on patient experience, and are required to monitor a patient’s health after treatment to prevent costly returns to the hospital due to health complications.

These healthcare providers will be paid in two phases: first, they will receive a $160 monthly payment based on the number of recipients undergoing treatment. Second, providers will receive a variable payment upon completion of treatment based on a patient’s quality of health.

While adversaries to the model believe that doctors will be less inclined to provide cancer treatment due to cost concerns, it will be interesting to see how the 443 participating programs are financially affected by this new system.

Summary by Chris D'Arrigo

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Christopher D’Arrigo currently works as a Financial Operations Manager for Blackboard, Inc. in Doylestown, PA, and is a contributor to Medical Groups. Chris graduated from Saint Joseph’s University with a focus in Accounting and enjoys studying the financial trends and technological developments of the healthcare industry.