Relations (DIR), Division of Workers' Compensation, through the Workers' Compensation Administration Revolving Fund and DIR that was carried out jointly within the Payment, Cost, and Coverage Program in RAND Health Care and the Justice Policy Program in RAND Social and Economic Well-Being. The goal of this research is to describe possible alternative payment models (APMs) for use in the California workers' compensation (WC) system instead of the current fee-for-service payment model that has historically dominated the U.S. health care system. The report (1) describes the current state of WC in California, including a brief history of payment and delivery reform in California, (2) provides stakeholder perspectives and insights on issues with the current fee-for-service WC system in California, and (3) describes possible next steps for piloting an APM in California, including discussion of the unique constraints and factors embedded within the California WC environment. This research builds directly on a number of past RAND studies for DIR and the California Commission on Health and Safety and Workers' Compensation, including several recent studies on WC issues, discussed as part of the background of WC in California. We have cited these RAND reports and include relevant text for reference. Our findings may be of interest to state policymakers throughout the country who are considering the adoption of APMs in WC.RAND Health Care and RAND Social and Economic Well-Being are divisions of the RAND Corporation.RAND Health Care promotes healthier societies by improving health care systems in the United States and other countries. We do this by providing health care decisionmakers, practitioners, and consumers with actionable, rigorous, objective evidence to support their most complex decisions. For more information, see www.rand.org/health-care, or contact