IRVING, Texas (BUSINESS WIRE), November 17, 2020 - Vizient, Inc. today published the white paper “It took a pandemic: the implications of COVID-19 experiences for value-based care,” which captures insights from 450 Vizient member hospitals. The report summarizes those learnings and adds the perspective of Vizient’s experts on the effect the pandemic is having on the shift to value-based care.
“The pandemic showed us clearly that fee-for-service-based providers simply cannot survive significant deterioration in health care utilization. As elective procedures were stopped, fee-for-service-based health systems resorted to internal cost management and government subsidies as their primary source of stability,” said Tawnya Bosko, principal, Sg2, a Vizient company. “Not every organization needs to take on full risk, but the evolution of the overall payment structure is a necessity.”
Findings from the report include:
- The pandemic exposed the riskiness of FFS care and the need for providers to redefine organizational perspective on risk and diversify payer portfolios. Eighty-three percent of health care systems interviewed believe the shift to value-based care will accelerate as a result of the pandemic.
- Pursuing a diversified portfolio of risk-based products, preferably some that include capitation, population-based payments, full or partial premium or other prospective revenue, encourages value-based behavior and protects providers from volatile swings in volume.
- Existing population health infrastructure and expertise provided valuable tools that enabled providers to more effectively manage during the pandemic.
- Investment strategies for providers are being re-envisioned considering the push toward the delivery of services at home and other ambulatory opportunities, decreasing unnecessary emergency department utilization, and providing coordinated, team-based care.
"The time is now for health systems that are leading CINs, ACOs, bundled payment models and similar efforts to find a formula for success that will improve the stickiness of these models with physicians and other providers,” said Bosko.
About Vizient, Inc.
Vizient, Inc. provides solutions and services that improve the delivery of high-value care by aligning cost, quality and market performance for more than 50% of the nation’s acute care providers, which includes 95% of the nation’s academic medical centers, and more than 20% of ambulatory providers. Vizient provides expertise, analytics and advisory services, as well as a contract portfolio that represents more than $100 billion in annual purchasing volume, to improve patient outcomes and lower costs. Vizient has earned a World’s Most Ethical Company designation from the Ethisphere Institute every year since its inception. Headquartered in Irving, Texas, Vizient has offices throughout the United States. Learn more at www.vizientinc.com.