You are a CIO of a large health system.  Your CFO just came back from a conference and is concerned about how different payment models will impact the system's investment in technology. 

He has asked for some "talking points" of your thoughts on the Pros and Cons of the different payment models and their impact on investing in technology.  Think about how each one increase or decrease the amount of capital used to buy technology and the employees to support the technology.  

1. Fee for Service (basically, the current revenue model):  Do you think staying with this model will result in the same, less or more investment in technology?  Why?
2. Capitation:  What if your system moved to have 50% of its revenues capitated, what risk would that pose to technology investments?  Would you be worried about losing staff under this model?
3. Bundled payments:  Your system signs contracts that increase bundled payments to 10% of revenue.  Any change?
4. Medicare-for-All:  Do you think the Medicare fee schedule (FFS, DRG, RBRVS) would support the same, more or less for technology investments?  Would you be concerned about having to cut your support staff?

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As the chief information officer of a large health system I understand the worries about payment models and how they affect investments in technology ... View the full answer