Table 1.
Updated List of Financing Strategies and Definitions
| Financing Strategy | Definition |
|---|---|
| Fee-for-service reimbursement | Include the evidence-based treatment in an insurance provider or management organization’s fee-for-service list/formulary so that providers can receive reimbursement for providing that practice (see also: increased fee-for-service reimbursement) |
| Increased fee-for-service reimbursement rate | Increase insurance provider or management organization’s reimbursement rates to providers for the evidence-based treatment, relative to other services, in order to offset increased costs to providers for delivering that practice (also called an “enhanced rate”) (see also: standard fee-for-service reimbursement) |
| Removed/altered billing limits | Allow insurance payments to providers for services that are disallowed under typical billing limits (additional sessions, services for patients with designated diagnoses, etc.) when delivering the evidence-based treatment |
| Technical support for billing | Provide assistance (from insurance or a third party) to providers for preparing and successfully submitting claims for delivery of the evidence-based treatment |
| Pay-for-success (PFS) financing | Establish agreements in which private or nonprofit investors prospectively provide funding for providers to deliver the evidence-based treatment and in which a government entity provides a payout to the investors if preestablished outcomes or quality metrics are achieved in a designated period |
| Global budget allocations | When allocating government general funds, include funding in the overall annual budget of a state, county, or municipal agency to cover the costs of having the agency’s providers deliver the evidence-based treatment |
| Line-item budget earmarks | When allocating government general funds, include designated (protected or earmarked) funding in the annual budget of a state, county, or municipal agency to cover the costs of having the agency’s providers deliver an evidence-based treatment |
| Braided funding streams | Coordinate multiple funding sources across two or more government agencies to cover the costs of an agency’s delivering the evidence-based treatment, such that each individual funding source remains accounted for separately; generally established through annual budgets (see also: blended funding) |
| Contracts for EBTs | Award funding contracts from state, county, or municipal agencies to provider organizations that agree to deliver the evidence-based treatment |
| Inclusion in block grants | Allow payment to providers for delivering the evidence-based treatment using block grants, which provide a fixed amount of money to state, county, or municipal agencies to pay for a designated set of health services |
| Shifting funds between programs | Reallocate funds from other programs and practices, within or across state, county, or municipal agencies, to cover the costs of delivering the evidence-based treatment; often funds currently dedicated to services whose use is expected to decline due to the evidence-based treatment |
| Grant funding | Award grant funding from government or private funders to provider organizations that propose to deliver the evidence-based treatment |
| Fundraising and investor donations | Collect donations from private or nonprofit investors, including fundraising and philanthropy, that will be used by provider organizations to cover the costs of delivering the evidence-based treatment |
| Cost offset | State, county, or municipal funders directly pay for infrastructure (such as a dedicated intermediary organization) that supports the delivery of evidence-based treatments by providing training, technical assistance, and other nonmonetary resources to providers within a given jurisdiction |
| Credentialing/rostering providers | Establish between insurance provider or management organizations and training organizations agreements for evidence-based treatments in which designated providers are allowed to receive payment for the evidence-based treatment (often at an increased rate) |
| Blended funding streams | Combine multiple funding sources across two or more government agencies to cover the costs of an agency’s delivering the evidence-based treatment, such that all funding is accounted for together and no longer separable by source; generally established through legislative action (see also: braided funding) |
| Dedicated taxes | Collect a state, county, or municipal tax, then allocate the revenue from that tax to provider organizations that deliver the evidence-based treatment |
| Capitated or patient-based payments | Provide a set, prospective insurance payment to providers that is expected to cover all expenses for a given patient’s care (including increased costs of delivering the evidence-based treatment) in a designated period (see also: bundled or episode-based payments) |
| Pay-for-performance (P4P) | Provide a financial bonus (on top of other insurance payments) to provider organizations for achieving preestablished outcomes or quality metrics in a designated period, with bonuses sufficient to cover increased costs to providers associated with delivering the evidence-based treatment |
| Value-based purchasing | Provide insurance reimbursement to providers only when they achieve preestablished outcomes or quality metrics for a designated period, with reimbursement sufficient to cover increased costs to providers associated with delivering the evidence-based treatment |
| Government bonds | Issue state, county, or municipal bonds (securities) for purchase by private or nonprofit investors, then allocate the revenue from those bonds to provider organizations that deliver the evidence-based treatment |
| Vouchers for EBTs | Provide vouchers of a predetermined value that patients can redeem to receive the evidence-based treatment from providers, who are then repaid by the insurance or government payor that issued the voucher |
| Bundled or episode-based payments | Provide a set insurance payment to a group of providers that is expected to cover all expenses for a given diagnosis or episode of care (including increased costs of delivering and coordinating the evidence-based treatments across providers); can be prospective or retrospective payments (see also: capitated or patient-based payments) |
Note. The original list of financing strategies and definitions was published in a scoping review (17); surface-level changes made to incorporate Survey 1 participant feedback are denoted with bold text. EBT = evidence-based treatment.
The original list of strategies and definitions was published under the terms of the Creative Commons Attribution 4.0 License
(https://creativecommons.org/licenses/by/4.0/) which permits any use, reproduction, and distribution of the work without further permission provided the original work is attributed.