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Expert Insight

How federal cost control tactics promote an enduring hybrid payment environment

With public insurance spending on the rise, federal regulators are deploying well-known cost-control tactics, such as rate cuts and value-based payment models. While physicians bear the brunt of rate cuts today, the entire industry must learn to adapt to an enduring hybrid payment environment.

Amid massive growth in public insurance, the federal government is intensifying scrutiny over healthcare spending. In response, regulators will continue to focus on two main strategies in their existing playbook: (1) decreasing reimbursement through direct price cuts and (2) payment transformation toward value-based models.

 

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