Which payment models influence care coordination?

• A. Fee-for-service only
• B. Salary-based payments for staff
• C. Fee-for-service, value-based purchasing, bundled payments, and capitation
• D. Cash-on-delivery payments

Answer: (C)

Payment models shape how providers work together to manage a patient’s care. When reimbursement is based on volume, as in fee-for-service, there can be fragmentation unless coordinated care processes are built in—so it still influences coordination, but not always in the most supportive way. Value-based purchasing links pay to quality and outcomes, which encourages providers to collaborate, share care plans, and ensure smooth transitions between settings. Bundled payments reimburse an episode of care across multiple providers, directly incentivizing coordination across hospitals, specialists, and post-acute teams to keep the episode efficient and high-quality. Capitation pays a fixed amount per patient, pushing care teams to manage care proactively and coordinate across services to stay within budget while meeting patient needs. A cash-on-delivery payment approach isn’t a standard healthcare financing model, so it doesn’t shape care coordination in the same way. Taken together, these models illustrate how different incentive structures can promote or hinder coordination, with all four real models collectively influencing coordinated care.