News & Commentary

Payers Embracing Value-Based Pay


Value-based reimbursement is, indeed, making inroads in health care, and payers plan to be at the forefront of the movement, according to a new survey by McKesson Health Solutions. Sixty-one percent of payers see value-based care as a profitable way to do business, according to McKesson’s survey, and the respondents from payer organizations expect value-based reimbursement models to eclipse fee for service by 2020. Payers expect value-based reimbursement to grow from a third of their business today to a majority of it in five years, according to McKesson’s survey. McKesson surveyed 115 payers of various sizes: 38% covering 100,000 to 500,000 lives, 35% covering 500,000 to a million lives, and 27% covering two million lives or more.

McKesson isn’t the only consultancy looking at value-based health care’s performance. Zachary Hafner, at the Advisory Board, says value-based friendly strategies include “white-labeling products, leveraging capabilities in managing stars ratings, and partnering with providers by bringing fundamental skills in sales, marketing, compliance, and network management.”