Manatt Health Director Jared Augenstein was quoted in an article by Endpoints News discussing the shift to outcome-based payment models for health technology products.
Traditionally, employers pay for health technology products based on the number of members using or enrolled in the product. Now, according to the article, health technology companies are shifting to a newer payment method that is dependent instead on whether the products show improvement in patients’ health. With employers and plans more carefully considering whether to purchase increasingly expensive health care technology, demand for outcome-based payment models has risen, according to Augenstein. “Many digital health solutions have experienced very low up take and engagement, and so the customers are saying: ‘Why are we paying when our employees or health plan members aren’t actually using your product or service?’ So there’s some pressure coming from that,” he said.
Endpoints News subscribers can read the full article here.