Outcome-based medicine is as it sounds: a system of medical care delivery that emphasizes positive patient outcomes. In the United States, outcome-based medicine further describes a payment model in which providers are purportedly compensated in a manner that incentivizes quality care delivery and positive patient outcomes, rather than providing flat payments for services rendered (the status-quo arrangement for U.S. healthcare).
It is important to note that outcome-based medicine is not evidence-based medicine, which describes a clinical approach rather than a reimbursement system. Evidence-based medicine is widely regarded as a best practice for medical providers across the specialty spectrum and is not a subject of serious debate within the community.
Though some may seem obvious, the perceived benefits of outcome-based medicine bear repeating:
Improved patient quality of life
Fewer compensatory interventions aimed at rectifying negative outcomes
Enhanced trust between patients and providers (i.e. patients do not assume that doctors are simply rendering services to pad billings)
More emphasis on preventive care and minimally invasive interventions