Alternative Payment Models (APMs)

Alternative Payment Models (APMs) is an approach that was developed in partnership with the clinician community and it provides added incentives for clinicians to provide high-quality and cost-effective care. The APM can apply to a specific condition or a specific episode of care, or a population. APMs can offer significant opportunities to eligible clinicians who are not ready to take on the additional risk and requirements of Advanced APMs.

Advanced Alternative Payment Models (Advanced APMs) enable clinicians and practices to earn greater rewards for taking on some risk related to the patients that they serve and their associated outcomes. It is important to mention that the Quality Payment Program does not change the design of any particular APM, however, it can create extra incentives for an ample degree of participation in Advanced APMs. There are six models for APMs and they are Comprehensive End Stage Renal Disease Care Model, Comprehensive Primary Care Plus (CPC+), Shared Savings Program Track 2, Shared Savings Program Track 3, Next Generation ACO Model, and the Oncology Care Model. The listing of Advanced APMs are posted on the CMS website at QPP.CMS.GOV and will be updated as needed.

To help identify future opportunities, MACRA established the Physician-Focused Payment Model Technical Advisory Committee (PTAC) to review and assess Physician-Focused Payment Models based on proposals submitted by stakeholders to the committee. In future performance years, we anticipate that the following models will be Advanced APMs such as Comprehensive Care Joint Replacement Payment Model, Advancing Care Coordination through Episode Payment Models Track 1, ACO Track 1+, New Voluntary Bundled Payment Model, and the Vermont Medicare ACO Initiative. 

Submitted by Kevin Harrington, MHSA, RHIA, CHIP, Full-Time Faculty Member at Saint Joseph's College