[nradov]

The healthcare industry is gradually shifting from a fee-for-service model to a value-based-care model. This will take a long and we'll probably always have a hybrid model with varying levels of financial risk spread across insurers, providers, patients, and government.

As an incremental step forward bundled payments are a good approach. For common interventions like a hip replacement the insurer gives the provider a single lump sum for everything instead of having separate line items for surgery, anesthesia, medical device, antibiotics, hospital stay, physical therapy, etc.