Navigating the Challenges and Benefits Associated With Value-Based Healthcare Model
The increasing expense of healthcare is a top concern for most Americans, including both healthcare providers and patients. There has been a transition from the traditional healthcare model to a pay-for-performance in the last few years. Here in this blog, we will share some challenges and the benefits associated with successful value-based healthcare implementation.
- In a value-based healthcare model, providers are paid on the basis of patient health outcomes and the quality of provided services.
- The primary focus of healthcare providers is on preventative care rather than treating a chronic disease or illness.
- Unlike the traditional healthcare model, healthcare providers work closely with other suppliers to provide quality care to the patients in a value-based healthcare system.
- Under a value-based healthcare model, all parties, including healthcare providers, patients, and insurance companies, benefit hence decreasing costs across the board.
What Is Value-Based Healthcare?
Value-based healthcare (VBC) is a healthcare delivery model under which providers are paid on the basis of patient health outcomes and the quality of services provided. According to this model, healthcare providers are paid to help patients improve their health within an evidence-based approach. It ultimately decreases the incidence and severity of chronic disease in people.
Challenges to Values-Based Care Model
The U.S. healthcare industry is shifting rapidly towards a value-based care reimbursement model. The primary focus of healthcare providers, including hospitals and physicians, is to deliver patient-centered care to each patient. It requires a complete focus on patient value. When concentrating on value for patients, some challenges may appear:
- The definition of value for patients may vary broadly amongst stakeholders in the healthcare industry.
- Every patient gets different treatment for the same condition. They desire to be treated differently based on their choices and decisions.
- The quality of care delivery in terms of patient-relevant results varies among hospitals.
What Are the Benefits of Value-Based Healthcare Delivery?
The benefits of a value-based healthcare model extend to patients, providers, suppliers, payers, and society as a whole. Let us discuss some of them:
- Patients Spend Less Amount for a Better Health
Under the value-based care model, patients will pay less to get the right and quality care. The primary focus of healthcare providers is on preventative care that is less costly and time-consuming than treating a chronic disease or illness like diabetes, cancer, hypertension, or obesity. A patient will have fewer doctor’s visits, medical tests, and procedures. As a result, they spend less money on medication as their overall health improves.
- Improved Patient Satisfaction
In a value-based healthcare model, patients are the main focus of the healthcare process, and their satisfaction is the main objective of healthcare providers. Doctors prescribe necessary tests and treatments to the patients instead of useless tests for money purposes. It saves patients money and the time spent during the examination or follow-up visit, and hence this model proves to be more productive and engaging.
- Improved Care Coordination
Unlike the traditional healthcare model, healthcare providers work closely with other suppliers to provide quality care and state-of-the-art services to the patients in a value-based healthcare system. The integration created as a result of this collaborative care leads to better patient outcomes and improves the overall health of the patient.
- Cost Control
Under a value-based healthcare system, all parties get benefits including healthcare providers, patients, and insurance companies. Insurance companies have to pay less money for their customers’ services, which means they are less prone to raise premiums and deductibles. Hence value-based care models decrease costs across the board.
Transitioning from a fee-for-service to a fee-for-value system has proved more difficult than expected. Still, it has been adopted as the most reliable method for decreasing the overall healthcare expenses while improving quality care and helping people live healthier lives.