Health care payment is shifting from the predominant fee-for-service model to value-based models to better control costs and improve quality. This movement is driving significant changes in how care is valued and how patients are cared for. Attribution methodology is at the core of constructing actuarially sound, provider-accepted and operational Alternative Payment Models (APMs), and attribution is the most critical component of value-based contract design. This paper describes the key elements of attribution methodology, identifies the challenges and opportunities associated with each and discusses key considerations related to risk and risk transfer from payers to providers.
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