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The Intersection Where Anti-Racism and Healthcare Meet

How to Transform Healthcare Payment Structures to Improve Equity

Payment structures matter. Learn effective strategies to develop and adopt payment structures that address root causes of inequity to better serve marginalized populations.

Historically, payment structures focused on keeping systems functioning smoothly, without addressing ways to serve marginalized populations and alleviate inequities. While there is no one-size-fits all approach, strategies can be adopted to develop equity-focused payment structures to support care delivery transformation including:

  • Assessing Stakeholder Needs
    While assessing financial priorities, consider how data will be used to identify health disparities, who the stakeholders are, and how a culture of equity can be created.
  • Determining Costs
    Consider necessary upfront investments and if they will result in future decreased costs.
  • Deciding Measurements and Targets
    Be clear about which performance measures will illustrate achievement, how to chart improvement, and which success benchmarks to use.
  • Deciding on Payment Model
    Consider how well the model supports goals, including pros and cons. Ask if it links to outcome measures/targets.
  • Planning Incentives and Flexibility
    Determine how incentives will improve quality, if they encourage long-term changes, and use data to make changes.

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