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Aligning Incentives

Aligning incentives refers to an effort to pay for the actions that provide value (such as good quality care, care coordination, and the like) and thus incentivize medical providers to make decisions toward that aim. Currently, the fee-for-service system incentivizes providers to provide services whether they are beneficial or not.

Inpatient Prospective Payment System (IPPS)

Medicare's system of paying for inpatient hospital care based on a set price for that diagnosis (DRG) that is then adjusted for factors such as…