Author: Jordan Johnson
Deloitte released a report to gauge the perception and perspective of Value Based Care from 25 hospital CEOs. The analyst’s findings were not surprising and great indicators of the needed focus:
“Many CEOs in our prior studies predicted that they would be much further along in adopting value-based payment models than they are today,” the analysts wrote. “They admit now that progress was much slower because efforts were much harder than they anticipated.”
There was agreement that Value-Base Care (VBC) models are here to stay, but the study indicated the decision to invest slowly and rely on a slow transition to VBC or invest now to prepare if disruptive models come sooner.
The four biggest and most important drivers of healthcare change over the next 10 years are:
- The transition to value-based care arrangements
- Quality-based payment methods
- More proactive consumers
- Digital transformation
Reducing the cost of care was also a major focus of the article. Many have approached cost reductions through mergers and acquisitions, but this can add cost. Previous studies have shown that 25% of hospital healthcare spend is waste. There is opportunity to merge claims data with operational data to identify areas of waste and minimize it.
Per Seema Verma:
“Value-based payment … is the future. So, make no mistake: If your business model is focused merely on increasing volume rather than improving health outcomes, coordinating care and cutting waste, you will not succeed under the new paradigm.”
The study indicated that CEOs “are looking for disruption, while keeping their core business intact.” This would be accomplished by investing in analytics, interoperability and big data. The only way this can be done is with service line expertise and platforms that can optimize operations, claims processing data, and analysis of the patient’s “total” care path cost.
Legion’s team has developed solutions to minimize waste, optimize operations, and reduce patient cost.
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