The Obama administration wants half of all Medicare payments to physicians and hospitals in 2018 to be made through alternative payment models such as medical homes and accountable care organizations (ACOs) as part of a “historic” timetable for basing reimbursement on value, not volume, the government announced today.

In addition, the Department of Health and Human Services (HHS) has set a goal of tying 85% of all fee-for-service (FFS) payments to quality and cost measures by 2016, and 90% by 2018.