New Metrics on Value-Based Healthcare: Adopters Report Healthy Savings, Prevention Gains

Sea Girt, NJ, November 17, 2015 --(PR.com)-- Despite a 71 percent adoption rate of alternative payment approaches, one quarter say the infrastructure required to support value-based payment is the most significant hurdle of these emerging models—greater even than the challenge of data integration or patient engagement, according to findings from an October 2015 survey on Value-Based Reimbursement Trends sponsored by the Healthcare Intelligence Network.

In assessing fee-for-value payment formulas, 56 percent of respondents favor a pay-for-performance model, with 71 percent employing these models in contracts for commercial populations, the survey determined.

Additionally, 21 percent of respondents reported savings from value-based payment models ranging from $100,000 to $500,000 annually.

In evaluating healthcare providers for value-based rewards, respondents most often review markers tied to quality (82 percent), hospital readmissions (56 percent) and patient satisfaction (56 percent) to determine payment, the survey found. The use of physician report cards to track provider performance was reported by 63 percent of respondents.

The survey also determined that the greatest impact of fee-for-value models was felt in the area of prevention. Sixty-nine percent attributed a rise in preventive care to value-based reimbursement initiatives.

Download more metrics from the complimentary HINtelligence report, "Value-Based Reimbursement in 2015: Quality, Satisfaction Markers Drive Healthcare Provider Rewards," at http://www.hin.com/library/registerValueBasedReimbursement.html

News Facts: HIN's white paper, Value-Based Reimbursement in 2015: Quality, Satisfaction Markers Driving Healthcare Provider Rewards, summarizes October 2015 responses from more than 80 hospitals, health plans, physician organizations, long-term care providers and others, capturing their experience with pay-for-value models and the impact of this payment evolution on care delivery and quality.

This 2015 snapshot of value-based reimbursement also identified the following metrics:

- Value-based payment contracts most often were executed for populations having more than 100,000 beneficiaries.

- Beyond commercial populations, value-based contracts were most likely associated with Medicare populations, say 59 percent.

- The electronic health record (EHR) was the most common technology supporting value-based reimbursement methodology.

- Organizationally, up to 1,000 physicians are reimbursed via fee-for-value formulas, report 62 percent of respondents.

Download more metrics from the complimentary HINtelligence report, "Value-Based Reimbursement in 2015: Quality, Satisfaction Markers Drive Healthcare Provider Rewards," at http://www.hin.com/library/registerValueBasedReimbursement.html

Quote Attributable to Melanie Matthews, HIN Executive VP and COO:

"These 2015 metrics on value-based payment indicate that while adoption rates are high, significant challenges remain. Much work remains for the industry to shore up the infrastructure and strengthen technical support for reimbursement models that reward quality."

Please contact Patricia Donovan to arrange an interview or to obtain additional quotes. For Melanie Matthews's profile, please visit http://www.hin.com/bios.html#mm

Related materials:

Download "Accountable Care Organizations in 2015: One-Fifth Primed for 'Next Generation ACO' Participation" at http://www.hin.com/library/registerACO2015.html

View "Chart: Top 8 Challenges to ACO Creation" at http://www.hin.com/chartoftheweek/top_challenges_to_ACO_creation_printable.html

View "Infographic: Value-Based Care Transformation" at http://hin.com/blog/2015/11/02/infographic-value-based-care-transformation/

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About the Healthcare Intelligence Network — HIN is the premier advisory service for executives seeking high-quality strategic information on the business of healthcare. For more information, contact the Healthcare Intelligence Network, PO Box 1442, Wall Township, NJ 07719-1442, (888) 446-3530, fax (732) 449-4463, e-mail info@hin.com, or visit http://www.hin.com.