The role of reimbursement mechanisms and payment adjustors in value-based healthcare

An increase in healthcare costs has led governments, health regulators and other payers to assess various options available to them to control costs. A common strategy that is implemented to mitigate the impact of rising healthcare costs is a move from fee-for-service reimbursement mechanisms to various types of bundled reimbursements, such as diagnosis-related groups (DRGs) or capitation payments. This paper considers the role of reimbursement mechanisms, and particularly DRG price adjustors, in directing general policy and specifically in the role of value-based healthcare.