The pandemic has actually elevated suppliers’ appetites for value-based contracting. Three-quarters of survey respondents stated they plan to tackle extra value-based contracts on account of the disaster.
Early on within the pandemic, it turned clear that well being plans supplied a monetary buffer for well being methods as a result of they generated regular revenue from premiums whilst income from surgical procedures and different patient-care providers plummeted. Furthermore, value-based contracts, which take many kinds however successfully pay suppliers to maintain sufferers wholesome relatively than primarily based on the variety of providers they supply, emerged as smart options throughout instances of uncertainty.
Atlantic Well being’s value-based technique was its “saving grace” through the pandemic, Gragnolati stated. The well being system’s contract with Horizon Blue Cross and Blue Protect of New Jersey options draw back danger, which requires being able to marry claims and medical knowledge.
“That provides you a base of information analytics that’s spectacular,” he stated.
Atlantic Well being even used that knowledge to review how flu usually migrates in its communities to foretell how COVID would unfold. Gragnolati stated the predictions have been “spot on.”
Whereas only a few payers in Baylor Scott & White’s market provide capitated contracts, Hinton stated the pandemic has actually accelerated the motion towards value-based care. That’s as a result of the federal authorities is accountable for extra sufferers’ care underneath public packages like Medicare and employers want to drive their healthcare prices down.
“All these roads result in a continued discount of open-ended, fee-for-service reimbursement and extra experimentation within the realm of value-based care,” he stated.
The disaster has additionally spurred extra funding in outpatient services as some sufferers proceed to shrink back from hospitals. Half of respondents to the survey stated the pandemic has prompted them so as to add extra outpatient services reminiscent of ambulatory surgical procedure facilities, urgent-care clinics and free-standing emergency departments.
Well being methods have invested closely in ASCs in recent times as each insurers and sufferers push for inexpensive choices, a recent Modern Healthcare analysis found.
Froedtert, for instance, has at all times been gentle on hospitals for its measurement and aware of pushing care into outpatient settings.
“COVID has basically shifted the best way sufferers are going to entry some modes of care and we predict we’re well-positioned for that,” Jacobson stated.
Whereas Carilion’s Agee stated her system additionally plans to put money into extra outpatient services, she stated that’s balanced with the truth that the system nonetheless must receives a commission. Outpatient services obtain decrease reimbursement from insurers, but it surely doesn’t essentially value much less cash to offer providers at these websites in contrast with at a hospital, she stated.
“What we’re attempting to be taught as we’re migrating to ambulatory providers is the best way to carry out these providers much less expensively,” Agee stated.