What is value-based compensation in healthcare?

Value-based compensation in healthcare refers to a reimbursement model that emphasizes the quality of care provided rather than the quantity of services rendered. This model is designed to incentivize healthcare providers to deliver better patient outcomes by focusing on the efficiency and effectiveness of care.

The correct choice accurately reflects this concept by indicating that providers are compensated based on a fixed amount for each diagnosis. This approach encourages providers to focus on comprehensive care and successful management of specific conditions, ultimately aiming to improve health outcomes and reduce unnecessary procedures.

The other options represent different payment models that do not align with the principles of value-based care. These alternatives often prioritize the volume of services or rely solely on patient satisfaction metrics without considering the overall quality of care or health outcomes. By emphasizing fixed compensation for specific diagnoses, value-based compensation strives to enhance accountability and improve healthcare delivery.