It is no secret that CMS (Centers for Medicare and Medicaid Services) and private payers are determined to replace health care’s volume-oriented fee-for-service payment system with alternatives aimed at promoting quality and value. What is surprising is the momentum that CMS has developed to affect change, as it moves aggressively to implement new payment models.
These new payment mechanisms are reshaping the economic relationship between doctors and hospitals and, therefore, have important implications for the compensation arrangements in physician employment agreements, particularly for doctors employed by hospitals or in practices leased by hospitals.
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