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Dec 29, 2023   |   In the News
Issue Brief: Recommendations to Advance Equity Through Payment Models
In the News

A new issue brief from the Purchaser Business Group on Health’s California Quality Collaborative (CQC) provides recommendations to advance health equity through alternative payment models. Funded through a grant from the California Health Care Foundation, this issue brief highlights the California Advanced Primary Care Initiative, led jointly by IHA and CQC.

Alternative Payment Models (APM) have the potential to transform the health care delivery system by expanding access to care, improving patient outcomes and mitigating health disparities. However, APMs must be intentionally designed in a way that promotes health equity and prevents unforeseen negative outcomes. Factors such as poverty, institutional racism, educational and economic opportunity, insurance coverage and the living environment significantly impact health equity and are crucial considerations within the space that APMs operate. When capitated payments and performance incentives fail to account for the necessary resources to provide adequate care, practices serving populations with higher medical and social risks may face financial challenges, ultimately impacting health outcomes negatively.

The California Quality Collaborative (CQC) and Integrated Healthcare Association (IHA) have partnered with health plans to design a common hybrid primary care payment model through the California Advanced Primary Care Initiative. CQC conducted interviews with subject matter experts in payment model design and health equity, gathering recommendations to promote equity in the payment model. This involves creating accountability for more equitable health outcomes in purchaser and payer contracts and alleviating unintended negative impacts on clinicians serving marginalized populations. The Health Care Payment Learning & Action Network (LAN)’s Advancing Health Equity Through APMs: Guidance for Equity-Centered Design and Implementation1 serves as a guiding framework. The recommendations presented in this brief are intended to strengthen health equity in APM design and implementation, regardless of geography.

Read the issue brief.