What are the key differences between PPS 1, PPS 2, PPS 3, and PPS 4 (and how do you choose)?

PPS 1 is a daily, event-based payment model, while PPS 2 is a monthly, population-based model designed for individuals with more complex needs requiring multiple services. PPS 3 and PPS 4 introduce the option to separate crisis services into a distinct payment structure.

PPS 2 is more aligned with quality metrics and population health management, while PPS 1 may feel more familiar because it retains elements of productivity-based reimbursement. There is no universal right answer—selection depends on your organization’s service model, population needs, and readiness to manage quality-based performance.