Which statement best describes Alternative Payment Models (APMs)?

• A. They focus on volume of services
• B. They shift from volume to VALUE and include value-based payments based on quality metrics
• C. They are only used for inpatient care
• D. They eliminate quality metrics from reimbursement

Answer: (B)

Alternative Payment Models focus on value rather than volume. They tie reimbursement to quality and cost outcomes, using metrics that measure how well care is delivered and how efficiently it’s priced. Providers may share savings, assume risk, or be paid through bundled or global payments that reward better outcomes and lower costs, not simply more services. This shift to paying for quality and total cost of care is what makes value-based, metric-driven payments the hallmark of APMs.

The other statements don’t fit because they imply paying for more services, limiting to inpatient settings, or removing quality measures, none of which align with the goal of value-based reimbursement that APMs pursue.