Advanced Alternative Payment Models (Advanced APMs)

Alternative payment models that place some financial risk on providers in return for greater rewards for meeting quality and cost standards. Advanced APMs are one of two value-based payment programs created under the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA). To qualify as an advanced APM, a model must: require use of certified electronic health record (EHR) technology; provide payment based on quality measures comparable to those used in the Merit Based Incentive Payments System (MIPS) quality category; and bear financial risk for more than a nominal amount of monetary loss, or be a patient-centered medical home that meets certain criteria.