Timing Is Everything: How To Pace Your Transition To Value-Based Care

By Christine Kern, contributing writer

Infographic provides four key considerations in making the move to value-based care.

As CMS continues to push to transition to value-based care models for hospitals and healthcare providers under Medicare as part of its efforts to overhaul the U.S. healthcare system, population health management initiatives are being brought more closely into focus.

The initiative is designed to lower healthcare costs without sacrificing quality of care and patient outcomes. And while the process has not been entirely smooth, there have been a number of transition success stories. One such example is Western Maryland Health System, which successfully completed the shift from a fee-for-service to a value-based care model, as Health IT Outcomes reported.

Now, a white paper from healthcare consulting firm PYA (Pershing Yoakley & Associates, P.C.) highlights how healthcare organizations can implement efficient and innovative strategic plans to make the transition. Strategic Positioning for Healthcare Transformation: Timing Is Everything outlines four key considerations for healthcare organizations to keep in mind as they work toward changing contracting tactics and operational structures. It also explores external drivers and organizational profile and strategic intent, as well as provides a framework for organizations to help make the transition from fee-for-service to value-based reimbursement.

The paper authors write, “While the industry continues to evolve to alternative payment and care models, a more nuanced approach is emerging for individual systems. By honestly assessing who they are and where they want to be positioned in their market, healthcare systems can pace their change to reflect the reality of their local markets and proactively manage the risk of transition.”

The accompanying infographic helps healthcare organizations approach the transition with thoughtful intent regarding governmental policy, local market forces, organizational profile and strategic intent.

PYA Principal Scott Clay explained, “Success under value-based reimbursement requires walking a fine line between acting too quickly and waiting too long. The former can result in compromising an organization’s financial stability; the latter potentially exposes an organization to the risk of obsolescence. Knowing the considerations for setting the pace affords organizations a framework for successfully timing the transition.”