Alternative Payment Models and Diabetes Outcomes

Determine whether and how alternative payment models (APMs) impact diabetes care and outcomes. Explain what APMs are and highlight key principles of effective APMs. Provide a conceptual model for how APMs can support transformation to evidence-based population health delivery models that improve diabetes outcomes.

Advanced APMs with shared savings or global budgets, along with quality incentives, tended to improve diabetes and composite chronic condition outcomes, and can reduce Medicare Part A hospital and Part B outpatient costs. Advanced APMs, particularly models with global budgets that hold health care organizations accountable for total cost of care and quality of care, can improve diabetes outcomes and reduce costs. Careful design and implementation of APMs are essential to provide the appropriate mix of incentives, support, and risk for participants to succeed in APMs and develop effective population health management models.