As the prevalence of value-based reimbursement models increases, effective financial incentives to compensate providers for the quality of the care they provide are increasingly essential. Unfortunately, traditional valuation methods for clinical services are inadequate to accurately determine the fair market value (FMV) of efforts to improve quality. This article examines key principles, data, formulas, and best practices to use when determining FMV compensation for quality or value-based incentive payment arrangements.
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