The Shift to Value-Based Care and What It Means for Healthcare Providers

The Shift to Value-Based Care and What It Means for Healthcare Providers

Posted Dec 15, 2020 from
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The implementation of value-based care, also known as pay-for-performance (P4P), has increased over the last few years. Currently, 59% of healthcare payments are tied to value-based care or P4P models, according to the US Department of Health and Human Services. P4P provides incentives for reaching individual performance goals with efficiency while also penalizing providers that have poor patient outcomes, medical errors, and high costs.

Value-based care poses a financial risk for organizations that are unprepared to change their business. It shifts revenue sources, profit drivers, and profit centers, which, in turn, produce a fundamental change in an organization's operating economics.

But as providers switch to value-based care, they are challenged to ensure affordability for patients in conjunction with enhancing care quality. This requires a clear understanding of both the clinical and operational information of the practice. 

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