Issue #9Financial Operations 8 min read

Value-Based Care Reimbursement: Transitioning Fee-for-Service Models

How ACOs and health systems optimize HCC risk adjustment coding, quality metrics, and shared savings reconciliations.

Elena Rostova, CPA

Elena Rostova, CPA

Director of Healthcare Financial Analytics

Published March 2026

Executive Summary & Key Highlights

  • Hierarchical Condition Category (HCC) risk score optimization
  • HEDIS and MIPS quality score reporting workflows
  • Managing capitation vs fee-for-service revenue streams
+18%

Shared Savings Capitation Yield

Achieved when annual wellness visits capture all active chronic HCC diagnosis codes accurately.

1. Accurate HCC Risk Adjustment Coding

In value-based contracts, accurate annual documentation of chronic conditions ensures proper RAF scoring, directly impacting Medicare Advantage shared savings distributions.

Actionable Practice Implementation Checklist

1
Schedule annual wellness visits (AWV) for all Medicare Advantage patients to capture active chronic conditions
2
Audit HCC diagnosis documentation annually to ensure MEAT criteria (Monitor, Evaluate, Assess, Treat) are met
3
Monitor MIPS quality metric performance monthly to avoid negative Medicare payment adjustments

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Elena Rostova, CPA

Elena Rostova, CPA

Director of Healthcare Financial Analytics

Specialist in healthcare billing compliance, ICD-10 coding audits, and commercial payer dispute resolutions.

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