Table 1. The Health Care Payment LAN Framework^a.

LAN category	LAN subcategory	Description	Example
1, Fee-for-service, with no link to quality and value	NA	NA	Traditional fee-for-service payments to medical professionals and organizations
2, Fee-for-service with link to quality and value	A	Foundational payments for infrastructure and operations	Payments for health system infrastructure investments
	B	Pay-for-reporting	Bonuses for reporting data or penalties for failing to report data
	C	Pay-for-performance	Bonuses for high-quality performance
3, APMs built on fee-for-service architecture	A	APMs with shared savings	Shared savings with upside financial risk only (eg, Medicare Shared Savings Program ACOs)
	B	APMs with shared savings and downside risk	Episode-based payments for procedures and comprehensive payments with both upside and downside financial risk (eg, Medicare Pioneer ACOs)
	N	Risk-based payments not linked to quality	NA
4, Population-based payment	A	Condition-specific population-based payment	Per-member per-month payments or non–fee-for-service payments for specialty services treating populations defined by diagnosis or condition (eg, MH/SUDs); health organizations and payers share financial risk
	B	Comprehensive population-based payment	Non–fee-for-service global budgets or full/percentage of premium payments for defined populations not based on diagnosis or condition (eg, commercial payer ACO); health organizations and payers share financial risk
	C	Integrated finance and delivery system	Non–fee-for-service global budgets or full/percentage of premium payments in integrated systems (eg, Kaiser Permanente)
	N	Capitated payments not linked to quality	NA

Abbreviations: ACO, accountable care organization; APM, alternative payment and delivery model; LAN, Learning and Action Network; MH/SUD, mental health/substance use disorder; NA, not applicable.

^aTable adapted from 2 previous publications on the LAN framework.^13,14