New AMA How-to Manual on Emerging Physician Payment Models
For immediate release:
Feb. 24, 2012
AMA committed to help physicians evaluate payment options
Chicago—Continuing its commitment to provide physicians with expert resources on emerging payment models, the American Medical Association (AMA) today released a new how-to manual to help physicians evaluate, negotiate, and manage budget-based payment systems that are becoming alternatives to the predominant fee-for-service model for reimbursing physicians. Typical budget-based payment systems include payment bundling, pay-for-performance, withholds and risk pools, capitation and shared savings.
Evaluating and Negotiating Emerging Payment Options comprehensively analyzes budget-based payment systems and provides essential information and practical tools that can help physicians:
- Understand the differences between fee-for-service and the budget-based payment systems;
- Master concepts associated with budget-based systems, including actuarial soundness, risk adjustment and risk mitigation;
- Estimate, monitor and manage the financial risks and rewards of a budget-based payment system.
“The AMA is committed to providing physicians with the tools they need to assess, participate and succeed in emerging payment systems,” said AMA President Peter W. Carmel, M.D. “The AMA’s new resource provides practical information to help physicians evaluate budget-based payment models and successfully negotiate the evolving payment environment.”
The AMA will continue to work with expert physician consultants and advocates to expand and update the resource to provide physicians with the latest information and tools on emerging payment arrangements.
Evaluating and Negotiating Emerging Payment Options is available free to all physicians on the AMA’s newly updated Practice Management Center website. For related resources about accountable care organizations, co-ops, and other collaborative options, visit www.ama-assn.org/go/aco.
Robert J. Mills
American Medical Association