Why are Revenue Cycle Systems Important for Value-Based Care?

In 2008, the Affordable Care Act launched a series of sweeping system-wide reforms that have had a major impact on the healthcare industry. One major development has been the progressive shift from a fee-for-service system to a value-based care system. With the previous fee-for-service orientation, hospital revenue depended on the number of services offered to patients. In the new value-based services approach, medical professionals are reimbursed according to improvements in patients’ conditions. The rationale behind this transformation is to compel doctors and hospitals to cut back on unnecessary tests. These cutbacks are intended to decrease the costs that patients have to pay and simultaneously enhance the quality of the care that they receive.