Since the Affordable Care Act was signed into law in 2010, the Centers for Medicare & Medicaid Services has been encouraging physician practices to move from a fee-for-service payment model to one that rewards value. It has been testing models that incentivize clinicians to provide preventive, proactive and appropriate care that improves patient outcomes and experience and decreases unnecessary health care spending. Most recently, it has focused on ensuring health equity across all patient populations.
Many practices experienced the financial benefits of value-based care (VBC) during the height of the COVID-19 pandemic, when they received regular per-patient payments from VBC contracts, despite a significant decline in service volume. If your practice was not among them, you may still question whether you can maintain profitability under VBC. You may struggle to understand the terms of contracts, lack the data analytics you need to manage patient populations or fear you will not be able to make the contracts profitable for your practice.
But VBC is not an issue of if, but when. Fee-for-service payment is simply not financially sustainable. Although your practice may not be ready to make the transition to VBC immediately, you should consider the strategies you will need to implement to make these payment models profitable for your practice.
Here are six strategies to help set your practice up for success when you are ready to make the switch…