Document Type


Publication Date

Spring 3-22-2017


Decreasing healthcare expenditure has been one of the main objectives of the Affordable Care Act (ACA). To achieve this goal, the Centers for Medicare and Medicaid Services (CMS) has been tasked with experimenting with provider reimbursement methods in an attempt to increase quality, while decreasing costs. The purpose of this research was to study the effects of the ACA on physician reimbursement rates from CMS to determine the most cost effective method of delivering healthcare services. CMS has experimented with payment methods in an attempt to increase cost effectiveness. Medicare has offered shared cost savings incentives to reward quality care to both primary care providers and preventative services. CMS has determined fee-for- service payments obsolete, opting instead for a Value Based Purchasing (VBP) method of payment. Although a universal payment method has yet to be adopted, it has been evident that a VBP model and preventative care can be used to decrease healthcare expenditure.


This conference paper was delivered at Business and Health Administration Association 2017 Meeting in Chicago, IL March 22-24. Copyright © 2017 BHAA. Reprinted with permission. All rights reserved.