What payment approach provides added incentive payments for high-quality and cost-effective care?

The payment approach that provides added incentive payments for high-quality and cost-effective care is known as Alternative Payment Models (APMs). APMs are designed to create a system that not only pays providers based on the volume of services rendered but also rewards them for delivering high-value care. This means that providers can receive additional reimbursement for achieving better outcomes, engaging in preventive care, and managing chronic diseases effectively, while also controlling costs.

By focusing on the quality of care rather than the quantity of services, APMs aim to create a more sustainable healthcare system that prioritizes patient health and effective care management. This model encourages healthcare providers to practice in a way that aligns financial incentives with patient-centered outcomes, leading to overall improvements in care and cost efficiency.

Other options may relate to aspects of healthcare payment or quality but do not specifically encapsulate the mechanism of providing incentive payments for high-quality and cost-effective care in the same manner as APMs. For instance, the Patient-Centered Medical Home (PCMH) model emphasizes care coordination and access but does not inherently provide the same direct financial incentives related to quality and cost-effectiveness as APMs do.