Today’s release of the Alternative Payment Model (APM) Framework White Paper defines payment model categories and establishes a common framework and a set of conventions for measuring progress in the adoption of APMs, which are methods of rewarding health care providers based on the quality and coordination of the care they provide.

APMs are important mechanisms for delivering high-quality, cost-effective, person-centered health care. In the APM Framework, all payments to health care providers fall within one of four categories. Providers are encouraged to move to categories that offer greater quality and value. As they do so, they will experience increased accountability for both quality of care and total cost of care, with a greater focus on population health management (as opposed to payment for specific services).

“The White Paper marks an important milestone in the LAN’s progress to advance the adoption of new and innovative health care payment models that promise to improve the quality of health care for all Americans, while also reducing its cost,” said Sam R. Nussbaum, MD, chair of the LAN’s Alternative Payment Model Framework and Progress Tracking (APM FPT) Work Group, which developed the White Paper.

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