What best describes value-based payment compared to fee-for-service?

• A. Fee-for-service pays per service regardless of outcome.
• B. HRRP targets 30-day readmissions.
• C. ACOs are networks that manage patient populations.
• D. Value-based payment rewards providers for achieving quality outcomes and lower costs.

Answer: (D)

Value-based payment ties reimbursement to how well care improves patient outcomes while controlling costs. It rewards providers for delivering high-quality care efficiently, rather than paying for every service performed. In contrast, fee-for-service pays per service regardless of the result, which can incentivize more testing or procedures without necessarily improving health outcomes.

So the best description is: value-based payment rewards providers for achieving quality outcomes and lowering costs. Related ideas like HRRP and ACOs exist within this space, but they describe policies or structures that enable value-based care rather than define the payment approach itself.