In an episode-of-care reimbursement system, payment is based on?

In an episode-of-care reimbursement system, payment is primarily based on the services provided for specific conditions. This reimbursement model is designed to bundle payments for all the services a patient receives for a particular condition within a defined time period. This approach encourages providers to deliver comprehensive care, as they receive a single payment that covers various elements of treatment, including diagnosis, procedures, follow-up care, and any necessary rehabilitation within that episode.

This model focuses on the quality of care rather than the quantity of services rendered, incentivizing healthcare providers to coordinate care efficiently and effectively, ultimately aiming to enhance patient outcomes while controlling costs. By consolidating payments around specific health issues, the system promotes accountability among healthcare teams and encourages them to optimize resource use.