The pandemic has actually elevated suppliers’ appetites for value-based contracting. Three-quarters of survey respondents mentioned they plan to tackle extra value-based contracts because of the disaster.
Early on within the pandemic, it turned clear that well being plans supplied a monetary buffer for well being techniques as a result of they generated regular revenue from premiums at the same time as income from surgical procedures and different patient-care companies plummeted. Furthermore, value-based contracts, which take many varieties however successfully pay suppliers to maintain sufferers wholesome moderately than based mostly on the variety of companies they supply, emerged as smart options throughout occasions of uncertainty.
Atlantic Well being’s value-based technique was its “saving grace” in the course of the pandemic, Gragnolati mentioned. The well being system’s contract with Horizon Blue Cross and Blue Defend of New Jersey options draw back threat, which requires being able to marry claims and scientific knowledge.
“That offers you a base of information analytics that’s spectacular,” he mentioned.
Atlantic Well being even used that knowledge to check how flu usually migrates in its communities to foretell how COVID would unfold. Gragnolati mentioned the predictions have been “spot on.”
Whereas only a few payers in Baylor Scott & White’s market provide capitated contracts, Hinton mentioned the pandemic has actually accelerated the motion towards value-based care. That’s as a result of the federal authorities is answerable for extra sufferers’ care underneath public applications 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 mentioned.
The disaster has additionally spurred extra funding in outpatient services as some sufferers proceed to draw back from hospitals. Half of respondents to the survey mentioned the pandemic has prompted them so as to add extra outpatient services comparable to ambulatory surgical procedure facilities, urgent-care clinics and free-standing emergency departments.
Well being techniques have invested closely in ASCs lately as each insurers and sufferers push for cheaper choices, a latest Fashionable Healthcare evaluation discovered.
Froedtert, for instance, has all the time been gentle on hospitals for its measurement and acutely aware of pushing care into outpatient settings.
“COVID has basically shifted the way in which sufferers are going to entry some modes of care and we expect we’re well-positioned for that,” Jacobson mentioned.
Whereas Carilion’s Agee mentioned her system additionally plans to spend money on extra outpatient services, she mentioned that’s balanced with the truth that the system nonetheless must receives a commission. Outpatient services obtain decrease reimbursement from insurers, nevertheless it doesn’t essentially value much less cash to supply companies at these websites in contrast with at a hospital, she mentioned.
“What we’re attempting to study as we’re migrating to ambulatory companies is find out how to carry out these companies much less expensively,” Agee mentioned.