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As interest in value-based care (VBC) grows, more health systems are turning to consultants to help them transition from a traditional fee-for-service model to VBC.
More health systems invest in VBC
Over the last few years, interest in VBC has accelerated and is expected to continue to grow. According to a 2022 report from McKinsey and Company, companies engaging in VBC could create $1 trillion in enterprise value by 2027, a significant increase from the $500 billion reported in 2022.
CMS has also moved toward rewarding providers for positive health outcomes, with many commercial insurers also doing or starting to do the same.
“The market pressure that [providers are] feeling from payers, as well as the world where their margin and their financial resiliency can be improved through value-based models, it’s really catalyzing groups to move into these programs kind of much more aggressively and with more of a longer-term view than they had historically up to now,” said Seth Edwards, VP of strategic collaboratives at Premier.
To help them transition from traditional fee-for-service models to VBC, many health systems are turning to consultants to help them build new VBC models or provide different services, like peer-to-peer training programs for physicians, data analytic platforms, and more.
For example, in 2019, SSM Health partnered with Navvis to develop a singular system to combine and track patient data and outcomes. They also created seven programs focused on acute care transitions, including strategies on transportation to visits and how to get medications to patients between visits.
Navvis also helped SSM prepare its staff for the transition to VBC, restructure leadership of its medical group, change its physician compensation model, and contract with payers.