22 May 2019 - Over the past decade, both public and private payers have increasingly sought to develop payment policies that emphasise the value of the services provided instead of the quantity. 

These value-based purchasing (VBP) strategies tie payment to metrics of cost-effective care. State Medicaid agencies are deploying VBP in both their fee-for-service and managed care programs as part of an overarching strategy to leverage their purchasing power to reduce costs and improve quality. 

Indeed, virtually every state has implemented at least one VBP model, and approximately two-thirds of states with managed care programs have imported the model into managed care by requiring plans to engage in VBP with network providers.

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