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Research shows transition from volume to value

MANAGED CARE July 2014. © MediMedia USA
Managed Care Outlook

Research shows transition from volume to value

Within five years, more than two thirds of all payments are expected to be based on measures of value, as payers and providers move away from fee-for-service payment, according to research commissioned by McKesson Health Solutions.

For the report The State of Value-Based Reimbursement and the Transition from Volume to Value in 2014, ORC International, a consultant specializing in research and business intelligence, interviewed executives from 114 payers and 350 providers.

From the interviews, ORC estimated the percentage of payments in fee for service, capitation, pay for performance, episodes of care/bundled payment, global payment, and other methods, such as shared savings.

ORC also used the interview results to estimate how the percentages would change in two years and in five years. Note that both payers and providers predict FFS will decline from 56% and 52% to 32% and 34%, respectively. Below are payers’ and providers’ estimates.

Mix of payment models

Payers

Providers

Source: The State of Value-Based Reimbursement and the Transition from Volume to Value in 2014, ORC International

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