Managed care, in relation to value-based payment, is described as:

• A. Managed care is unrelated to value-based payment
• B. Managed care is a form of fee-for-service
• C. Managed care pays for bundled services
• D. Managed care is a form of value-based payment

Answer: (D)

Value-based payment focuses on rewarding quality and efficient care rather than simply paying for each service. Managed care organizations structure payments to promote care coordination, prevention, and cost control, using contracts that go beyond traditional fee-for-service. In practice, providers often receive fixed per-member-per-month payments (capitation) with risk-sharing and performance incentives tied to quality and outcomes. Bundled payments or shared savings can also be part of the mix, but the overarching aim is to align payment with value. For these reasons, managed care is best described as a form of value-based payment.