Skip to content
  • About
  • Contact
  • Contribute
  • Book
  • Careers
  • Podcast
  • Recommended
  • Speaking
  • All
  • Physician
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • Video
    • All
    • Physician
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • Video
    • About
    • Contact
    • Contribute
    • Book
    • Careers
    • Podcast
    • Recommended
    • Speaking

Why fee-for-service reform is needed

Sarah Matt, MD, MBA
Physician
December 10, 2025
Share
Tweet
Share

You just saved a patient an emergency room visit with a three-minute portal message. You reviewed their connected blood pressure cuff data, saw a concerning trend, and tweaked their medication. It was efficient, high-quality, proactive care.

Your reward? Zero dollars.

Worse than that, your contribution was invisible. It didn’t count toward your productivity. It didn’t show up on a dashboard. In the eyes of our current health care system, that high-value interaction might as well have never happened. This isn’t a glitch in the system; it is the system. And it’s failing us.

We are clinicians operating in a digital-first world, armed with incredible tools for remote monitoring, asynchronous communication, and data-driven insights. Yet, we are still being measured and paid by an analog-era rulebook. The system’s obsession with fee-for-service (FFS) and its outdated Key Performance Indicators (KPIs), like Relative Value Units (RVUs) and visit volume, are the greatest economic barriers to care in modern medicine. Our current metrics don’t measure quality, value, or efficiency. They measure activity. They reward clicks, visits, and procedures, regardless of the outcome. This flawed model actively discourages innovation and penalizes physicians for doing the right thing. If we want to unlock the true potential of digital health, we must stop letting these broken metrics dictate our actions. We must rethink how we measure quality and how we get paid for it.

From “visits per day” to “problems solved per month”

The first step is to define new, meaningful KPIs that actually reflect quality of care in the digital age. While the fee-for-service system isn’t tracking these, you should be. Think of them as your “Shadow KPIs”, the metrics that prove your real value. Here are three examples:

  • Old KPI: Patient visit volume. New KPI: Patient time-to-resolution. Instead of measuring how many patients we can churn through in a day, what if we measured the total time from a patient’s initial complaint to its successful resolution, regardless of how many “visits” it took? A single telehealth call, two portal messages, and an RPM check-in that solves a problem in 48 hours is infinitely more valuable than three in-person visits over three weeks.
  • Old KPI: RVUs billed. New KPI: Time in tight glycemic range. For a patient with diabetes, an RVU is a meaningless abstraction. What matters is their health. By leveraging remote patient monitoring (RPM) and CGM data, we can measure the percentage of time a patient is in their target glucose range. This is a direct, tangible measure of health and quality, worlds away from a billing code.
  • Old KPI: Number of procedures. New KPI: Reduction in preventable hospitalizations. Chronic care management (CCM) programs are a perfect example. The billable code itself is small, but its impact is massive. By tracking how your CCM program (powered by digital check-ins and care coordination) reduces emergency room visits and hospital admissions for your high-risk patients, you are demonstrating value that dwarfs the fee-for-service revenue.

Hack the system to prove your value

Of course, we can’t just invent new KPIs and expect payers to magically adopt them. We all have bills to pay. This is where we get practical. We must use the flawed fee-for-service system to our advantage as a bridge to a value-based future. In my own work, I often advise health tech startups and clinical leaders who are frustrated by this exact problem. My advice is a two-step “hack”: Step 1: Master the fee-for-service codes we have. Become an expert at billing for the digital work you’re already doing. Use the codes for remote patient monitoring, chronic care management, and telehealth visits. This generates the revenue to make your digital health programs sustainable today. Step 2: Use your “Shadow KPIs” as a business case. While you’re billing fee-for-service with one hand, you’re tracking your new, meaningful KPIs with the other. After three, six, or twelve months, you will have a powerful dataset. You can now walk into a meeting with a local employer or a regional payer not as a cost center, but as a value generator. The pitch sounds like this: “Over the last year, our RPM program for your diabetic employees generated $100,000 in fee-for-service revenue. But our real data shows we also reduced emergency room visits by 40 percent and saved you an estimated $500,000 in hospital costs. Let’s create a shared savings initiative so we can both benefit from this proven value.” You stop asking for permission and start proving your worth.

Don’t wait to make changes

This isn’t a futuristic fantasy. This is a practical, actionable strategy you can start today. The fee-for-service system is a relic. It’s slow, reactive, and rewards the wrong behaviors. It’s time to stop letting it dictate our patients’ futures. It’s time to start measuring what matters, proving our value, and building the health care system we and our patients deserve.

Sarah Matt is a surgeon and health tech strategist.

Prev

Experts applaud the FDA hormone therapy decision to remove boxed warnings

December 10, 2025 Kevin 0
…
Next

Why the cannabis ethics debate is really about human suffering

December 10, 2025 Kevin 0
…

Tagged as: Surgery

Post navigation

< Previous Post
Experts applaud the FDA hormone therapy decision to remove boxed warnings
Next Post >
Why the cannabis ethics debate is really about human suffering

ADVERTISEMENT

Related Posts

  • How fee-for-service shapes your doctor’s decisions

    Jonathan Staloff, MD & Joseph H. Joo, MD & Joshua Liao, MD
  • Prior authorization reform for health care coverage takes center stage

    Afua Aning, MD
  • Clinicians unite for health care reform

    Leslie Gregory, PA-C
  • Celebrating silver: 3 best practices for meeting people where they are with diabetes adherence

    Gary Marc Rothenberg, DPM
  • A state of service — and how flow can get you there

    Benjamin Borokhovsky
  • Pharmacy benefit manager reform vs. direct drug plans

    Leah M. Howard, JD

More in Physician

  • Why every physician needs a sabbatical (and how to take one)

    Christie Mulholland, MD
  • The moral injury of “not medically necessary” denials

    Arthur Lazarus, MD, MBA
  • Is physician unionization the answer to a broken health care system?

    Allan Dobzyniak, MD
  • The decline of professionalism in medicine: a structural diagnosis

    Patrick Hudson, MD
  • The patchwork era of medical board certification

    Brian Hudes, MD
  • How neurodiversity in relationships shapes communication

    Farid Sabet-Sharghi, MD
  • Most Popular

  • Past Week

    • How environmental justice and health disparities connect to climate change

      Kaitlynn Esemaya, Alexis Thompson, Annique McLune, and Anamaria Ancheta | Policy
    • A physician father on the Dobbs decision and reproductive rights

      Travis Walker, MD, MPH | Physician
    • Examining the rural divide in pediatric health care

      James Bianchi | Policy
    • Will AI replace primary care physicians?

      P. Dileep Kumar, MD, MBA | Tech
    • Why pediatricians are key to postpartum depression screening

      Mikenna Reiser | Conditions
    • How CAR-NK cancer therapy could be safer than CAR-T

      Cliff Dominy, PhD | Meds
  • Past 6 Months

    • Why patient trust in physicians is declining

      Mansi Kotwal, MD, MPH | Physician
    • Is primary care becoming a triage station?

      J. Leonard Lichtenfeld, MD | Physician
    • How environmental justice and health disparities connect to climate change

      Kaitlynn Esemaya, Alexis Thompson, Annique McLune, and Anamaria Ancheta | Policy
    • The blind men and the elephant: a parable for modern pain management

      Richard A. Lawhern, PhD | Conditions
    • Is tramadol really ineffective and risky?

      John A. Bumpus, PhD | Meds
    • Psychiatrists are physicians: a key distinction

      Farid Sabet-Sharghi, MD | Physician
  • Recent Posts

    • Why pediatricians are key to postpartum depression screening

      Mikenna Reiser | Conditions
    • Prostate cancer genomic testing: a physician-patient’s perspective

      Francisco M. Torres, MD | Conditions
    • Why every physician needs a sabbatical (and how to take one)

      Christie Mulholland, MD | Physician
    • Retail health care vs. employer DPC: Preparing for 2026 policy shifts

      Dana Y. Lujan, MBA | Policy
    • Taiwan’s “Yi-Dong-Yang”: a preventive aging model for super-aged societies

      Gerald Kuo | Conditions
    • The moral injury of “not medically necessary” denials

      Arthur Lazarus, MD, MBA | Physician

Subscribe to KevinMD and never miss a story!

Get free updates delivered free to your inbox.


Find jobs at
Careers by KevinMD.com

Search thousands of physician, PA, NP, and CRNA jobs now.

Learn more

Leave a Comment

Founded in 2004 by Kevin Pho, MD, KevinMD.com is the web’s leading platform where physicians, advanced practitioners, nurses, medical students, and patients share their insight and tell their stories.

Social

  • Like on Facebook
  • Follow on Twitter
  • Connect on Linkedin
  • Subscribe on Youtube
  • Instagram

ADVERTISEMENT

ADVERTISEMENT

  • Most Popular

  • Past Week

    • How environmental justice and health disparities connect to climate change

      Kaitlynn Esemaya, Alexis Thompson, Annique McLune, and Anamaria Ancheta | Policy
    • A physician father on the Dobbs decision and reproductive rights

      Travis Walker, MD, MPH | Physician
    • Examining the rural divide in pediatric health care

      James Bianchi | Policy
    • Will AI replace primary care physicians?

      P. Dileep Kumar, MD, MBA | Tech
    • Why pediatricians are key to postpartum depression screening

      Mikenna Reiser | Conditions
    • How CAR-NK cancer therapy could be safer than CAR-T

      Cliff Dominy, PhD | Meds
  • Past 6 Months

    • Why patient trust in physicians is declining

      Mansi Kotwal, MD, MPH | Physician
    • Is primary care becoming a triage station?

      J. Leonard Lichtenfeld, MD | Physician
    • How environmental justice and health disparities connect to climate change

      Kaitlynn Esemaya, Alexis Thompson, Annique McLune, and Anamaria Ancheta | Policy
    • The blind men and the elephant: a parable for modern pain management

      Richard A. Lawhern, PhD | Conditions
    • Is tramadol really ineffective and risky?

      John A. Bumpus, PhD | Meds
    • Psychiatrists are physicians: a key distinction

      Farid Sabet-Sharghi, MD | Physician
  • Recent Posts

    • Why pediatricians are key to postpartum depression screening

      Mikenna Reiser | Conditions
    • Prostate cancer genomic testing: a physician-patient’s perspective

      Francisco M. Torres, MD | Conditions
    • Why every physician needs a sabbatical (and how to take one)

      Christie Mulholland, MD | Physician
    • Retail health care vs. employer DPC: Preparing for 2026 policy shifts

      Dana Y. Lujan, MBA | Policy
    • Taiwan’s “Yi-Dong-Yang”: a preventive aging model for super-aged societies

      Gerald Kuo | Conditions
    • The moral injury of “not medically necessary” denials

      Arthur Lazarus, MD, MBA | Physician

MedPage Today Professional

An Everyday Health Property Medpage Today
  • Terms of Use | Disclaimer
  • Privacy Policy
  • DMCA Policy
All Content © KevinMD, LLC
Site by Outthink Group

Leave a Comment

Comments are moderated before they are published. Please read the comment policy.

Loading Comments...