While value-based care may be the future of the healthcare industry, trends in healthcare payments are missing from this important conversation according to Jeff Lin, our Senior Vice President of Product Management, who recently penned a feature commentary for Health Management Technology on the topic. In the piece, Lin explores how payers can look to trends in healthcare payments to develop the strategies and processes needed to deliver value-based care more broadly throughout the industry.
Read the full article, Trends in healthcare payments are missing from the value-based care conversation, in Health Management Technology. Below is an excerpt from the article.
In 2016, healthcare spending grew to $3.4 trillion and is expected to reach $5.5 trillion by the year 2025. In response to this growth, the industry has been on the search for the answer to cost control. Value-based care and alternative payment models were introduced to the healthcare lexicon as strategies to curb the massive spending growth in the industry.
Value-based care is designed to incentivize providers to deliver a higher quality of care through fewer, more effective services. In a fee-for-service model, providers are paid for performing services regardless if they are medically necessary or even if they are redundant procedures. The goal of moving toward value-based care from the fee-for-service model is to achieve better clinical outcomes for patients at a lower cost to the industry.
Progress toward a value-based care model has been admittedly slow. However, the efforts toward achieving this new payment model have been largely focused on the clinical side of the healthcare experience, with little emphasis on the administrative processes that support the transition. Instead, payers can look to trends in healthcare payments to develop the strategies and processes needed to deliver value-based care more broadly in the industry.