An analysis of healthcare payment system trends and their limitations for implementation in Korea: a focus on the United States and the United Kingdom

Purpose: This study analyzes recent trends in bundled payment, pay-for-performance, and value-based payment systems in the United States and the United Kingdom and derives policy implications for the reform of the Korean healthcare payment system based on these international experiences.Current concepts: In recent years, major countries have introduced new healthcare payment systems, including bundled payment and pay-for-performance models, with the goals of more effectively controlling medical costs and improving the quality of medical services. These payment systems emphasize the assessment of performance and efficiency and compensate medical providers according to measured outcomes rather than service volume alone.Discussion and conclusion: Bundled payment systems have been associated in some settings with unintended consequences, including reductions in certain aspects of service quality, the provision of unplanned medical services, readmissions occurring outside defined payment episodes, and increased emergency department utilization. In addition, performance-based payment systems require a sophisticated and multifaceted policy approach that extends beyond financial incentives alone, as monetary rewards by themselves do not necessarily guarantee sustained improvements in care quality. Many countries are currently pursuing healthcare system reforms and payment model innovations in response to demographic shifts and rising medical expenditures. However, the specific reform approaches vary considerably according to each country’s technological capacity, institutional structure, and political environment. Therefore, although Korea can draw important lessons from international reform experiences, it is essential to develop a context-sensitive and carefully designed payment reform strategy tailored to the characteristics of its own healthcare system rather than directly importing external models.