Describe "value-based purchasing."

Value-based purchasing is a strategy used in healthcare that emphasizes the quality of care delivered to patients rather than the quantity of services provided. This approach aims to improve health outcomes by incentivizing providers to deliver higher quality care, which can lead to better patient satisfaction and overall health improvements. Under this model, providers are rewarded for meeting certain performance metrics that reflect effective care practices, patient engagement, and positive health outcomes.

This system contrasts with traditional fee-for-service models, where providers are compensated simply based on the volume of services rendered, potentially leading to unnecessary treatments and higher overall costs without guaranteeing improved patient outcomes. By focusing on the quality of care, value-based purchasing aligns provider incentives with patient health needs, promoting a more sustainable and effective healthcare system.