America’s Physician Groups (APG) today highlighted its “Third Option” in response to a Request for Information (RFI) issued by the Centers for Medicare & Medicaid Services’ (CMS) Innovation Center (CMMI) on Direct Provider Contracting (DPC) models, and underscored the importance this forthcoming model will play in advancing the value movement.

The Third Option is an innovative physician-led payment model that would bring risk-based integrated and capitated care to Original Medicare. APG’s Third Option would also create a new and additional advanced alternative payment model (APM) which providers and beneficiaries in Medicare need to continue the evolution of value-based care.

“Our preferred model of capitated, coordinated care avoids incentives for high utilization associated with fee-for-service (FFS) reimbursement,” said Don Crane, President and CEO of America’s Physician Groups.  “Instead, we believe that this model aligns incentives for physicians to provide the best care in the right setting to improve the health of entire populations, particularly chronically ill seniors.”

APG also highlighted the importance of beneficiary protections such as increased access to information about the model, including easily decipherable quality metrics, and assistance with enrollment.

“This model will truly put physicians and patients in the driver’s seat in terms of taking responsibility for improving health,” Crane maintained.  “We know that not only will this model allow our healthcare system to operate more efficiently and at a lower cost but, more importantly, it keeps patients healthier and gives them greater access and control over the care they receive.”

Please click here for a copy of the letter.