In the past, CMS payment reforms have led to similar changes among payers and insurers in the private sector, and many industry groups praised the new initiative as a positive step.

The federal government took a major step in promoting value-based care (VBC) this week as U.S. Health and Human Services Secretary Alex Azar announced the Primary Care Initiative, which will give providers more flexibility and financial incentives to coordinate care for patients.

The April 22 announcement took place at the offices of the American Medical Association (AMA), which had gathered more than 200 medical society representatives to discuss primary care issues. Azar, whose department runs the Centers for Medicare and Medicaid services (CMS), was joined at the announcement by CMS Administrator Seema Verma and Adam Boehler, director of the Center for Medicare and Medicaid Innovation (CMMI).

Related: More patients seeing NPs and PAs for primary care needs