Moving Payment from Volume to Value

What Role for Performance Measurement?

This policy brief highlights different approaches to achieving a payment system that encourages higher-value health care. According to the brief, some policy experts recommend approaches to value-based payment that require the adoption and implementation of performance measurement, while others rely on changing payment incentives.

The brief, written by the Urban Institute’s Robert Berenson and supported by the Robert Wood Johnson Foundation, looks at the concept of value-based payment, explores the different views on the role of performance measurement, and highlights obstacles to rewarding higher-value care. In the brief, Berenson, an Institute Fellow, highlights the fact that some experts focus on measuring and rewarding value directly, while others believe in rewarding value indirectly by providing incentives for care thought to be more likely to produce higher value. Berenson concludes that the Affordable Care Act makes specific commitments to explore both broad approaches.