Value-based Healthcare Model: The Better Healthcare Payment System?
The conventional fee-for-service model in the healthcare industry is reaching obsolescence. The need to substitute this system can be effectively addressed by implementing a Value-based healthcare system.
The subject of quality versus quantity of care services furnished by a healthcare provider has always been a point of discord. Value-based healthcare settles this debate by aiming at value instead of volume of care.
What Is The Value-based Healthcare Model?
Value-based healthcare is a system of healthcare services delivery where healthcare providers like hospitals and physicians are paid depending on patient health outcomes. As an alternative to the present healthcare models, this system mainly focuses on value. Value-based healthcare holds the potential of modifying and improving healthcare delivery in every division of healthcare.
The framework of the Value-based healthcare model encourages healthcare providers to deliver more on quality instead of the number of services provided. The healthcare providers are paid depending on their patient’s health outcomes and are also rewarded for furthering positive patient outcomes. In this manner, the patients have a healthier life aided by evidence-based medicine, which ultimately diminishes the chronic disease burden on healthcare.
A healthcare professional can take the following steps to start implementing Value-based healthcare in practice:
- To identify the opportunities within the patient population
- To design the intended care model
- To partner for successful outcomes
- To drive suitable utilization of resources
- To quantify the impact and constantly improve
The benefits of a Value-Based Healthcare system extend to suppliers, payers, patients, providers, and society as a whole. These benefits are as follows:
- Patients spend less money to obtain better health outcomes.
- Providers gain efficiencies along with increased patient satisfaction.
- Robust cost control with reduced risk for payers.
- Aligned prices and patient outcomes for suppliers.
- A health-wise better society due to reduced overall healthcare spending.
- Improved Care Coordination.
Various key companies have been promoting Value-based healthcare delivery frameworks to satisfy the demand. Some of these companies are LifePod, Wellframe Solutions, Health Recovery Solutions, Connect Insurance Agency, SentryHealth, Alignment Healthcare, Troy Medicare, AMC Health, AllyAlign Health, VitalityHealth, Bright Health, etc.
Improving health outcomes is a virtuous goal, but it cannot come into existence without proper budgeting. Thus, managing the finances along with sustained cost efficiency is important. In other words, understanding the relationship between health outcomes and resource allocation is vital for making Value-based healthcare a successful model.
Source: Value-based Healthcare — Growing Demand, Benefit, and Importance, by Delveinsight.
