LAN APM Framework
VBP models are also called alternative payment models (APMs). We use VBP in Oregon to emphasize the importance of value in the payment model.
The Health Care Payment Learning & Action Network (LAN) is an active group of public and private health care leaders dedicated to providing thought leadership, strategic direction, and ongoing support to accelerate our care system's adoption of APMs and accountable care. The LAN mobilizes payers, providers, purchasers, patients, product manufacturers, policymakers and others in a shared mission to lower care costs, improve patient experiences and outcomes, reduce the barriers to APM participation and promote shared accountability.
The LAN classifies payment models into four categories as shown in the framework below:
LAN APM Framework (PDF)
VBP models can include multiple categories
It is important to note that many payment models include a combination of APM categories. For example, a payer may have an agreement with a primary care entity which includes relatively small prospective per member per month (PMPM) payments (2A foundational payments) combined with financial incentives for providers that meet certain quality benchmarks (2C pay-for-performance).
Definitions of LAN APM categories and examples are included in the Glossary. The LAN’s goal is to accelerate the percentage of US health care payments tied to quality and value in each market segment through the adoption of two-sided risk
alternative payment models. Currently, most alternative payment models are between payers and primary care provider entities and shared savings arrangements are more common than two-sided, shared-risk arrangements in most markets.