Equip Criticizes Healthcare Payment Models

Equip, a provider of eating disorder treatment, is publicly criticizing the conventional healthcare reimbursement structure that ties revenue to volume and duration of care, rather than patient outcomes.

According to Equip CEO Kristina Saffran, the current fee-for-service model incentivizes more frequent appointments and longer treatment stays, potentially creating scenarios where patient recovery is not the primary financial driver.

"The only industry where product failure is profitable," Saffran stated, drawing a parallel to an auto repair shop that charges by the hour but delivers a car that still malfunctions.

Equip advocates for value-based care models, where reimbursement is linked to clinical and financial results. This approach, they argue, would foster the development of more effective treatments that genuinely improve patient health and reduce long-term costs.

The company has implemented its own value-based approach in partnership with insurance plans. Their virtual care model offers integrated support from doctors, dietitians, therapists, and coaches, aiming to provide patients with the right dose of care within their daily lives.