The two other most common payment models are Medicaid contracts with states or through a Medicaid health plan (60 percent) and direct contractual relationships with employers (24 percent), according to the American Hospital Association’s 2014 Survey of Care Systems and Payment.

The survey also asked hospital leaders which payment arrangements and models they will have in the next two years to accommodate the transformation from volume to value and respond to consumers’ expectations of greater transparency in pricing and billing. Of the payment models hospitals anticipate launching, more than half selected fee-for-service contracts with payers (52 percent), 46 percent chose direct contractual relationships with employers and 41 percent selected bundled payments with insurance companies or through direct contracts with employers. Additionally, 30 percent of hospitals plan to launch an insurance product through a shared-risk plan with an insurance company.

For more information about AHA data, visit