Hospitals Not Buying Into Value-Based Care

But they may be inching that way

Value-based health care may be getting rave reviews in some places where it’s been tried but many hospital systems still cling to the fee-for-service system, Modern Healthcare reports. A survey of 60 hospitals found that only about 15% got 10% or more of their revenue from such contracts, according to the Modern Healthcare Hospital Systems Survey.


But they haven’t given up on the technique, apparently. “Three-quarters of the respondents estimated that risk-based contracts generated 4% or less of their net patient revenue, but most indicated their share of risk-based contracts would slightly increase in 2017,” Modern Healthcare reports.


One of the health systems most invested in value-based care is the Montefiore Health System. Twenty-two percent of net patient revenue was tied to risk-based contracts. But it takes a huge investment and a long-commitment; Montefiore began moving toward value-based care in 1996.


“‘We have made an enormous investment in our infrastructure with almost 1,000 full-time employees managing 400,000 individuals’ covered by risk-based contracts, Rosenthal said, adding that about 235,000 patients receive care under full capitation. “‘They are coordinating care and helping manage people's health. It’s an investment many organizations today find difficult because they don’t have the opportunity to support infrastructure through risk arrangements. You have to start small and grow over time.’”


Source: Modern Healthcare