Value-based care is a payment approach that rewards healthcare providers (such as physicians and hospitals) based on the clinical and financial outcomes they achieve. Patient satisfaction is also important in many value-based payment models.
For years, providers have been gradually transitioning to this new payment approach and moving away from traditional, fee-for-service payment. During this transition, some hospitals and physician groups have created accountable care organizations (ACOs). An ACO is a care delivery model allows providers to share savings and risk based on how well they manage population health.
Because of the added stress of the COVID-19 pandemic, providers in ACOs will be facing even greater financial challenges in the months ahead, even if they receive some government assistance.
Many customers without ACOs will also struggle from the added financial pressure of the COVID-19 pandemic, even if they receive government aid. The American Hospital Association estimates that hospitals will lose more than $202 billion due to lost revenue and COVID-19 expenses in four months. Meanwhile, physician practices have seen their revenue cut by 55%, according to the Medical Group Management Association.
Fortunately, many of the same strategies your team can use to support customers moving to value-based care will also help them deliver value to providers during and after the pandemic. Consider some of the following strategies: