In our Value-Based Care series, Sidebench is doing a deep dive into an increasingly popular healthcare reimbursement model that emphasizes quality of care compared to the traditional fee-for-service model. In our previous post, we explored what value-based care is (add hyperlink), and now we’ll dissect some of the benefits.
The Center for Medicaid and Medicare Services has implemented many value-based care programs with the eventual goal that all Medicare beneficiaries with Parts A and B will be cared for by a provider in a value-based care model by 2030. There is a reason why healthcare industry experts have touted value-based care as the future of healthcare. It has the ability to help physician burnout, payor cost control, patient outcomes, and strengthen population health. More specifically, some of these benefits include:
Reduced Cost: With the rate of costly chronic diseases rising, patients are spending increasingly more on healthcare yearly. Studies have shown that ongoing, team-based care results in fewer unnecessary emergency room visits and lower costs. Decreasing the number of ED visits can save the US approximately $32 billion annually.
Better Satisfaction for Patient and Provider: Ideally, patients will face fewer doctor’s appointments, tests, procedures, and ED visits because hospitalizations and medical interventions will be prevented or avoided. In the long term, providers will be able to spend less time on chronic disease management and achieve greater efficiency.
Personalized Care: Utilizing care coordination technology or technology that addresses social determinants of health can help provide more individualized care and proactively address patient needs. Precision medicine, wearables, and AI technology all have the power to better understand diseases and deliver more proactive and preventative care.
Reduction of Medical Errors: Medical errors are a top concern amongst insurance sponsors (e.g. large employers) as they realize their funds are used on ineffective or harmful treatment. Value-based care has the power to reduce medical errors and reduce risks.
Stronger Cost Control for Payors: Value-based care allows payors to have stronger cost control as they can encourage preventative services which would hopefully reduce the need for illness treatment. As such, fewer services will be needed and payors can pay out less money for services used by their clients, reducing overall healthcare spending. Additionally, there is decreased administrative burden translating directly into financial savings.
The benefits of value-based care provide innumerable benefits to the healthcare system. The future of healthcare hinges on the increased focus on prevention and overall well-being both of which are pillars of value-based care.
See some of our outcomes-focused work in healthcare here, stay tuned for part four of four in our Value Based Care series.
