While organizations say they are ready to move towards value-based care models, they also signify a lack of infrastructure as a roadblock to progress, finds a new study from Global Healthcare Alliance.
In looking at the results, 62 percent of respondents say their level of overall preparation for financial changes is very strong or somewhat strong, and 54 percent indicate their preparation for value-based care delivery changes is very or somewhat strong.
But when it comes to preparation of a value-based infrastructure, the picture is slightly less positive, with 50 percent of respondents reporting it is very weak or somewhat weak.
While there are hurdles healthcare organizations have to clear to achieve success in a value-based framework, the findings indicate that with the right governance, technology and operations, value-based programs are sustainable.
Yet value-based programs' effect on healthcare's total financial picture is uncertain. A recent study from the Healthcare Financial Management Association found they don't deliver lower costs of care at the market level, nor do they improve quality outcomes, largely due to a lack of downside risk and a misalignment of incentives. The study found no statistically significant correlation between the penetration of value-based payment models and growth in the total cost of care for Medicare or commercial payers in over 900 markets.
On the other hand, a Change Healthcare report this month shows value-based care initiatives have reduced unnecessary medical costs by 5.6 percent while improving patient engagement. Close to a quarter of respondents noted savings in excess of 7.5 percent.
Even with the reported infrastructure challenges, overall responses in the GHA survey suggest that momentum continues to build for value-based care, and respondents expect strong growth. Twenty-three percent of patients are currently in value-based programs and that's expected to close to double to 46 percent over the next three years.