Why Provider-Payer Collaboration Is the Secret to Value-Based Success
Despite the benefits of incentive-based payment models in healthcare, including indications that it may reduce readmissions and healthcare costs, providers and payers alike have taken a while to warm up to value-based care.
But during the pandemic, when elective procedures were postponed in the first months and volumes were slow to return to pre-COVID levels, many providers who relied on fee-for-service payment for most of their revenue found themselves negatively impacted financially by the lower utilization of services.
Value-based payment doesn’t have to be a zero-sum game: Providers can achieve healthy margins while payers decrease risk and associated costs. The key to realizing value is to partner closely with payers to develop models that support data sharing, high-quality care, and reduced waste, which is critical given that $600 billion in healthcare spending could be considered waste.
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