Medical Homes, ACOs Offer Better Business Models

The patient-centered medical home model in Arkansas, which has more than 600 participating providers, helps the state's Medicaid program incentivize quality care instead of paying for volume of services.

Arkansas officials designed the PCMH payment structure to support primary care doctors in the state, who often rely on high volumes of acute care, to instead implement team-based strategies, coordinate chronic care delivery and achieve better patient outcomes, according to a Health Affairs blog post.

Since the state has a wide array of practices, ranging from highly efficient primary care doctors to clinics with high rates of avoidable emergency room admissions, officials knew that simply rewarding doctors for reducing their spending would have penalized the efficient practices.

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Source: Fierce Healthpayer