As Reported by Medicaid…

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Hospitals and Medicaid Value-Based Goals

The shift to value-based reimbursement has become inevitable, but one goal — tying 50 percent of all payments to value-based initiatives by the end of 2016 — may not be met. A recent survey by Health Catalyst shows that hospitals are slow to make the move toward value-based initiatives, with only 3% of health systems currently meeting the target and 23% expected to meet the goal only by 2019.

The Health Catalyst online survey reached out to healthcare executives — including CEOs, CFOs, and CMOs — representing 190 U.S. hospitals and large hospital-owned physician groups. The survey found that healthcare executives aren’t opposing the shift to value-based care, but that the process is proving difficult.

With many health systems already embracing ACOs and bundled payments, the survey shows that the largest group of hospitals with at-risk contracts consists of smaller hospitals with fewer than 200 beds. Why? According to the survey, this could be because smaller organizations have less access to the capital needed to make risk-based contracting a success.

via Health Catalyst

Bobbi Brown, Health Catalyst’s vice president of financial engagement, noted that while many healthcare organizations embrace the transition from fee-for-service to value-based payments, they’re struggling to implement it while juggling a number of other high priorities. The survey suggests they are making progress but could use help — some financial, some technical, particularly better analytics to identify at-risk populations and manage risk more effectively. Her bottom line: progress is slow, but healthcare leaders remain committed to making value-based care work.

via Health Catalyst

Success in Value-Based Care

Analytics and quality improvement were two major elements that survey respondents cited as extremely important to value-based care success, with 52 percent citing analytics and 24 percent citing a culture of quality improvement.

The shift to value-based reimbursement won’t be an easy one. But the survey gives insight into how health systems and hospitals will need to revolutionize their organizational structure, embracing analytics and driving quality improvement.

Read the full Health Catalyst survey here.