Alternative Payment Models (APMs) are payment approaches that incentivize high-quality and cost-efficient care. APMs can apply to a specific clinical condition, a care episode, or a population. Bundled payments, Accountable Care Organizations (ACOs), Patient-Centered Medical Homes (PCMHs), and episodes of care are all examples of APMs.
Advanced Alternative Payment Models are a subset of APMs. Qualified participants in Advanced APMs may earn a 5-percent incentive payment and be exempt from MIPS if enough of their patients are included in the APM. Learn more about which models are Advanced APMs at qpp.cms.gov.
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