Which reimbursement model ties payments to outcomes and quality metrics rather than pure volume?

• A. Fee for Service
• B. Capitation
• C. Salary-based payment
• D. Alternative Payment Model

Answer: (D)

Value-based reimbursement focuses on results rather than volume. Payments are adjusted based on how well care improves patient outcomes and manages costs, using quality and performance metrics such as readmission rates, complication rates, patient experience, and cost per episode. This approach is the hallmark of an Alternative Payment Model, which covers structures like bundled payments, shared savings, and pay-for-performance that reward quality and efficiency. In contrast, fee-for-service pays for each service irrespective of outcomes; capitation pays a fixed amount per patient without inherently tying payment to outcomes; and salary-based pay is a fixed wage. So the model that ties payments to outcomes and quality metrics is an Alternative Payment Model.