What is value based contracting?
Evaluating a specific value-based contract requires weighing the potential benefits and risks related to the organization’s capabilities and resources, the financial impact, and credit risk. Physician engagement, transparency and accountability, and performance measurement and improvement all must be in place for a value-based contract to be successfully implemented. We provide the expertise and in-depth understanding of contracting dynamics to ensure success. Value-Based Contracting is what we do!
How does value based contracting work?
In the evolving business model, hospitals, health care systems, physician groups, and other health care providers will take on more risk, and be responsible for delivering defined services to a specific population at a predetermined price and quality level. New value-based arrangements are springing up in communities across the USA. This shift provides a much needed change allowing providers to deliver their best quality care for the best price.
What does value based care mean?
Value based care is a reimbursement methodology that challenges the decade-old “volume-based care” associated with fee-for-service. Value based care encourages healthcare providers to deliver the best quality care for the most reasonable cost, improving the overall value of care.
What is outcomes based contracting?
Outcomes based contracting encompasses reimbursement levels tied to a specific business outcome in the target population. Rather than the reimbursement levels being based on input costs or outputs, outcomes based contracting is tied to a specific business outcome. An example of input costs is labor costs. An example of an outputs are transaction volumes.
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