The government and private insurers have been trying for years to move away from the fee-for-service system that pays doctors and hospitals based on the volume of tests they perform and treatments they prescribe. They want to replace it with contracts that reward quality and better outcomes. Medicare, the federal insurance program for seniors, plans to make half its payments through such arrangements by 2018. The changes in the reimbursement model are rippling out to manufacturers of drugs and devices.
Read Full Article »