Healthcare Management Foundations
HM 600 DE – Foundations of Health Care Management
Please create a full 1-pager on the following topic of:
Topic: The Global and Profession Direct Contracting Model
Please start with (1) an introduction of this payment model; (2) explain the innovation payment model with its benefits; (3) the goals of the model; (4)
transition into the redesign model of the ACO.
This portion is the beginning of a research paper. Please include 2 citations to include this one.
Global and Professional Direct Contracting (GPDC) Model | CMS Innovation Center. (2020, October 1). innovation.cms.gov. Retrieved September 11, 2022,
from https://innovation.cms.gov/innovation-models/gpdc-model
Sample Solution
The Global and Professional Direct Contracting Model is a new payment model from the Centers for Medicare & Medicaid Services (CMS) that focuses on providing financial incentives to healthcare providers to improve patient care and reduce costs. The model seeks to promote value-based care by incentivizing physicians, hospitals, nursing homes, home health agencies and other medical providers to provide high quality, affordable patient-centered care. This model was created as an alternative to traditional fee-for service arrangements which often lead to inefficient use of resources and higher overall costs for patients.
This innovative payment structure utilizes three key components: global monthly capitation payments, episode payments and shared savings/losses. Under the global capitation system , providers receive a predetermined amount on a monthly basis in exchange for providing comprehensive primary care services including preventative services and chronic disease management (CMS 2020). The episode-based payment component allows CMS payers’ reimbursements based on individual episodes of illness or injury instead of reimbursing providers according visits made(Heckman et al., 2020 ). Lastly , the shared savings / losses portion provides incentives both parties involved assume financial risk if certain performance goals are not met (Heckman et al., 2020 ) .
The goal of this redesigned model is twofold: 1) Increase access to quality primary care ;and 2) Improve healthcare cost management . By paying healthcare providers through population -level contracts rather than individual events it encourages them focus more closely on preventive medicine & chronic disease management while also creating better alignment with payer’s interests when it comes managing overall costs( Heckman et al.,2020). In addition, because multiple types professionals can participate in these arrangements they have greater potential reach those living in medically underserved areas who may otherwise lack access adequate treatment.
In conclusion , the Global & Professional Direct Contracting Model is an important step towards achieving value – based health care reform . With its mix of population – level reimbursement combined with shared financial responsibility this program offers far more comprehensive approach addressing growing concerns about rising medical bills while still ensuring quality patient outcomes remain paramount.
