Health Care Payment in the United States

This document provides an overview of how various actors (e.g., physicians, hospitals, and other health care providers) are paid in the United States health care system. It is particularly focused on features of the payment system that contribute to strategic decisions by various players. Better understanding these payment mechanics is essential for creating strategic reforms both within and across organizations. This document is not primarily intended to be read “cover to cover” but instead to supplement various cases and course materials that focus on specific sectors of the U.S. health care system. That said, those who are less familiar with payments for health care goods and services in the U.S. may find reading this entire document useful before taking a course on the U.S. health care system.