I. IntroductionThe healthcare industry has recently experienced some of the most challenging years in recent history for financing, including long-term debt financing and working capital financing. Then, just as financial markets were beginning to recover, the most comprehensive health care bill was passed since Medicare's creation in 1965. On March 23, 2010, President Obama signed the Health Care Act into law. the most comprehensive health care reform since the creation of Medicare. the Medicare program. This new health care reform, known as the Patient Protection and Affordable Care Act (ACA), and subsequent related laws, expands Medicare and Medicaid coverage and attempts to control health care costs and to improve health care delivery systems. However, it also places significant demands on health care delivery systems, which will result in increased costs, including: decreasing some traditional sources of funding available to health care delivery systems; and increase the pool of government-funded patients. These changes create financial stress and uncertainty that could adversely impact the funding available to the health care sector at a time it cannot afford.II. Health care reformA. Reasons for Health Care Reform Health care reform is necessary for the following reasons: • First, health care prices are skyrocketing. In 2011, the average cost for a family of four increased by 7.3%, to $19,393. That's almost double the cost of just nine years ago. By 2030, payroll taxes will cover only 38 percent of Medicare costs. The rest will help to fill the deficit in public allocations. • Second, health care reform is needed to improve the value of our health care, which is currently the lowest in the developed world. Chronic diseases cause 70% of all U......... middle of paper ...... or behavioral health care organizations that are understanding enough to adopt clinical decisions aimed at support technologies such as those mentioned above. In the approaching era of affordable healthcare, those who can clearly demonstrate the evidence-based value of their product will be rare and in high demand. Given what we understand about the emergence of behavioral health issues and their influence on overall healthcare spending, healthcare providers have the exact expertise needed to illustrate the significant value of a system that rewards performance. Unfortunately, such improvements in value (i.e., outcomes divided by cost) are not encouraged by common fee-for-service payment models, which encourage quantity, not value. Changing this is one of the core concepts of health care and affordable care reform – moving from volume incentives to performance-based pay..