The Centers for Medicare & Medicaid Services has finalized an alternative payment model for patients with chronic kidney disease.

The End-Stage Renal Disease Treatment Choices approach makes greater use of home dialysis and transplants. Nearly a third of all kidney care providers will be affected by the shift, federal officials noted.

Care providers will see a payment bump for delivering home-based dialysis care. CMS argued that while at-home dialysis is preferred treatment option, it happens far less frequently when compared with other developed nations. In 2016, only about 12% of all patients treated for ESRD were receiving at-home dialysis.

The new approach will improve outcomes while reducing outlays by $23 million over five-plus years, according to CMS. It is scheduled to take effect Jan. 1.