Value-based contracts are becoming increasingly popular among healthcare providers. As these types of contracts continue to grow in popularity, many physicians are starting to dabble with strategies that will not only ensure high-quality care for patients, but, will also provide financial-based incentives. The healthcare organizations are now working with professional, multidisciplinary teams in order to design value-based contracts that offer incentives.
One of the main reasons for this move is that medical professionals do not want to make mistakes that are closely associated with population management. If you are a provider, it is imperative that you strive to get involved with these types of contracts. In this brief guide, you will learn a few important facts about value-based contracts.
Actionable Contracts Equal Value
In order to successfully get involved in value-based contracts, you must ensure that the contracts are actionable. In order to do that, you should follow the template used by Northwell Health. This company has 21 different hospitals and a $8 billion system that is based in the City of Great Neck, New York.
It currently oversees 200,000+ people under a value-based contract that works in conjunction with commercial payers and government-based payers. Additionally, the company shares savings with other types of health-based businesses that practice in managed care. These include Humana and Aetna. When this company reviews a contract, they use the following considerations to determine if they should participate:
- First, you should determine all of the proposals associated with the attribution model being presented with the value-based contract.
- Next, you should determine the opportunities that are available to offset the risk.
- Then, it is important to determine if there are thresholds associated with the minimum savings associated with the value-based contract.
- It is essential to determine if there are certain periods of measurements associated with the contract.
- Finally, it should be determined what the targets and the baselines of the value-based contract are so that you know how your company will benefit.
The Initiation of Value-Based Care
When starting a value-based care contract, it is imperative that you understand that it should be initiated with a culture that is highly supportive of innovation. These types of contracts require a high level of collaboration among providers; however, it results in transformation that changes the quality of care that patients are able to receive. It has been estimated that, by the year of 2020, 75% of health-based businesses will transition from volume-based healthcare contracts to value-based healthcare contracts.
These types of contracts are highly beneficial when it comes to streamlining the measurements and metrics of healthcare providers. These contracts place a special emphasis on the quality of the outcome of a patient’s care rather than the process-based measures that are behind a patient’s care. As a result, there are massive improvements in the care that a patient receives.
There are many challenges when it comes to lining up quality of care and financial incentives; however, as time progresses, these challenges are sure to lessen.
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