Navigation Links
Momentum Toward Value-Based Payment in Hospitals Growing Significantly, New Surveys Find
Date:4/7/2015

Skokie, IL (PRWEB) April 07, 2015

The momentum of healthcare’s progress toward a value-based business model is gaining speed, based on results of two recent surveys of hospitals by Kaufman, Hall & Associates, LLC, a leading provider of strategic, capital, and financial advisory services and software tools.

Responding hospitals reported that the use of value-based contracts increased significantly over a six-month period. The percentage of hospitals reporting that 10 percent or more of their revenue comes from value-based contracts almost doubled between August 2014 and February 2015, from 22 percent to 42 percent.

The two surveys found even more dramatic growth in expectations for future use of value-based payment. The percentage of responding hospitals anticipating that value-based contracts will constitute 50 percent or more of their revenue within the next 24 months tripled compared with six month previously, from 7 percent to 22 percent.

These findings come on the heels of two high-profile national commitments to escalate use of value-based payment. On Jan. 26, the Centers for Medicare & Medicaid Services announced its goal to move 50 percent of Medicare payment to a value-based model by 2018. Two days later, the Health Care Transformation Task Force, composed of influential payers and providers, committed to having 75 percent of its business in value-based arrangements by 2020.

Traditional fee-for-service payment rewards healthcare providers based on the volume of services they deliver. In contrast, value-based payment strives to shift that incentive by putting providers at financial risk or offering financial rewards for achieving cost or quality goals. This shift in incentives brings with it strategic challenges for traditional providers as they are required to re-orient their efforts toward helping patients to avoid the need for treatment in the most expensive settings.

“These findings suggest that more providers are viewing the movement toward value-based payment as inevitable,” commented Mark E. Grube, Managing Director, Kaufman Hall. “As the shift from volume to value gains momentum, hospitals and health systems need to move quickly to understand the likely trajectory in their markets, to identify their desired role, and to make the significant structural and operational changes needed to succeed in the changing business model.”

In another sign of healthcare’s shifting business model, 85 percent of respondents reported an increase in outpatient visits in the last six months of 2014, up from 72 percent in the first six months of 2014.

Visit Kaufman Hall’s website for strategies on making the transition to a value-based health system.

About Kaufman Hall
Since 1985, Kaufman Hall has been a leading advisor to hospitals and health systems, helping them incorporate proven methods into their strategic planning and financial management processes and consistently achieve their goals. Management consulting services and enterprise performance management software enable data-driven analysis and quantify the financial impact of plans, scenarios, and actions to improve organizational decision making. Kaufman Hall provides sophisticated, integrated, and intuitive software solutions for long-range planning, budgeting and forecasting, performance reporting, capital planning, cost accounting, decision support and analytics on a unified platform that can be delivered via the cloud or on premise.

Media Contacts:
Chanel Benoit
Aria Marketing for Kaufman Hall
617-332-9999 x209
cbenoit(at)ariamarketing(dot)com

Robert Fromberg
Kaufman Hall
847-441-8780, x361
rfromberg(at)kaufmanhall(dot)com

Read the full story at http://www.prweb.com/releases/2015/04/prweb12631476.htm.


'/>"/>
Source: PRWeb
Copyright©2015 Vocus, Inc.
All rights reserved

Related medicine news :

1. Harmony Healthcare International Builds Growth Momentum
2. Innovative Dental Implant Procedure to Gain Momentum in the New Year
3. Kapstone Medical Announces Strategic Partnership with Vial Momentum
4. Project HEAL Benefit Golf Tournament Gaining Momentum
5. TrekDesk II’s Kickstarter Campaign Gains Momentum
6. The SoftWare Assurance MarketPlace (SWAMP) Gains Industry Momentum With Significantly Improved Interface Enhancements
7. Alfresco Activiti Enterprise Gains Momentum with Key BPM Partnerships
8. Northeast Delta Human Services Authority Builds Upon Integrated Care Momentum
9. Kitakyushu, Japan Xocai "Healthy Chocolate" News Update: Xophoria "Ripped and Rich" MLM Hair Conditioner Program Gains Momentum in Suita and Atsugi
10. Shift Towards Noninvasive Closure Technologies to Drive the Surgical Incision Closures Market, According to a New Report Update by Global Industry Analysts, Inc.
11. Diet Doc Introduces MetWell, their Newest Addition of Safe and Effective Diet Products, Geared Toward Helping those with Eating Disorders or Food Addictions
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:7/9/2019)... ... 2019 , ... Complete Nutrition , a leading retailer offering unique health, ... business toward an e-commerce company. With 15 years of experience in the traditional retail ... digital consumers. , As part of the transition, Complete Nutrition sold 18 owned ...
(Date:7/9/2019)... ... , ... MM&M today debuted its annual Agency 100 report ... holding companies to five-person creative boutiques, the Agency 100 remains the industry’s definitive ... contains a full profile for Benchworks , including detailed information about revenue, ...
(Date:7/9/2019)... ... 2019 , ... Anxiety help can often feel out of reach for many ... online therapy platform called Emote seeks to change this for just the ... mobile device, tablet or computer to highly qualified licensed therapists online. Easily download the ...
(Date:7/9/2019)... ... July 09, 2019 , ... Babyscripts , ... teaming up with Atrium Health, one of the nation’s most highly integrated not-for-profit ... care at Atrium Health access to the Babyscripts app during the entirety of ...
(Date:7/9/2019)... ... July 09, 2019 , ... Heilind Electronics , a ... Electronics in North America, has recently added the manufacturer’s AC01 Series connectors to ... contact pitch and 2.5mm to 3.0mm stacking height to accommodate today’s smaller and ...
Breaking Medicine News(10 mins):
(Date:7/10/2019)... ... July 10, 2019 , ... ... of “Behind The Scenes” addressing the costs of healthcare and how these costs ... the United States and some of the painful decisions families face between paying ...
(Date:7/9/2019)... LAUDERDALE, Fla. (PRWEB) , ... July 09, 2019 ... ... the educational series, “Behind The Scenes”, will be introducing a new episode of ... Medicine seeks to restore health, and maintain it, through wellness practices throughout a ...
(Date:7/9/2019)... , ... July 09, 2019 , ... The live ... provide a roadmap for developing cannabinoids into medicines, including:, , ... most promising indications for cannabinoid medicines , Recent advances in medicinal cannabis ...
Breaking Medicine Technology: