Providers Slow to Adopt Value-based Pay
Written by Editor   
Tuesday, August 22, 2017 09:45 AM

About one-quarter of 700 health executives polled in a new survey said they had no value-based reimbursement initiatives planned for 2017.

Health systems are transitioning from a model that emphasizes volume to value, albeit slowly. Smaller organizations were far more reticent to pursue value-based reimbursement initiatives, some of which include the Medicare shared savings program and variations of accountable care organizations, than larger organizations. Around two-thirds of the organizations that reported between $100 million and $1 billion in annual revenue were not pursuing value-based initiatives in 2017, while the vast majority of larger firms that have the resources needed to integrate these models into clinical operations had some form of value-based models in place.

The industry is beginning to grasp the concept that quality is a driver to reducing costs and that the cost-cutting measures of yesterday were short-term band-aid approaches that did not achieve a sustainable balance of cost and quality.  Providers are pursuing measures to help reduce medical errors and increase reliability. 

A holistic, cultural shift is needed to fully embrace value-driven care, researchers said. That involves delivering effective care that produces measurable results, increasing transparency to reduce medical waste and redundancy, gauging and improving patient experience—an endeavor 93% of respondents said they are currently undertaking—and making sure employees are engaged and satisfied, they said.

As to improving quality, 49% of respondents have initiated quality audits, 31% had implemented physician performance scorecards that include a quality measure and 38% plan to institute facility scorecards.

While it can be costly, providers can better leverage new technologies to improve outcomes and patient experience, researchers said. Only 26% of respondents ranked new technologies as one of their top three priorities for 2017 and only 8% are using patient-centric analytics to improve patient experience.