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Health system executive teams are in a bind as expenses rise faster than reimbursement rates, and margins are expected to stay slim for the next few years. With few options to mitigate costs and avoid cutting services, layoffs or worse, hospitals and health systems are accelerating value-based care strategies and taking a more nuanced approach to the site of service for care.
“At University Hospitals, we fully embrace the move to value in healthcare, providing the highest quality care at the lowest possible cost to the patient while at the same time optimizing efficiency for patients, providers and payers,” said Paul Hinchey, MD, COO of Cleveland-based University Hospitals, told Becker’s. “Crucial to this goal is creating an effective system of care that provides patients with a wide range of outpatient access options, effectively meeting them on their own terms.”
Shifting clinical services to the outpatient setting is also effective for patients when complemented by tertiary and quaternary services as part of an integrated health system. Pete November, CEO of Ochsner Health in New Orleans, said outpatient care aids in the system’s overall value-based care transformation.
“As we accelerate value-based care, outpatient care is an important part of how we partner with the people on their health to keep them well, rather than treating them after they’re sick or injured,” he said. Health systems are also changing physician contracts to increase emphasis on the value-based components, incentivizing outcomes over volume. There is a trend toward team-based compensation as well.