Survey: Health Care Reps Unsure Of Value-Based Contracts

Just how exactly does the health care industry feel about “value-based” contracts? According to a recent survey, health care managers believe linking reimbursement from health plans and government payers to efficiency and the quality of care could hurt overall profits.

Value-based purchasing is designed to reward health care providers for meeting various performance measures for quality and efficiency. This is in stark contrast to the fee-for-service option. So, which one do medical organizations prefer? The results are not as cut and dry as one might think.

According to a recent survey from KPMG, LLC, one-third of representatives from hospitals, physician practices, health plans and pharmaceutical companies believe that value-based contracts will harm their profits. Additionally, 17 percent of surveyed providers said they expect a big drop in operating income, while just 4 percent were optimistic that new model would equal a large increase in reimbursement.

A total of 240 representatives from hospitals, physician practices, health plans and pharmaceutical companies were interviewed for the survey.

Joseph Kuehn, a partner at KPMG’s Healthcare Advisory Services practice, explained in the KPMG release that newer systems and the use of data analytics will lead to greater coordination of care between physicians, hospitals, pharmacies and other providers. Additionally, it will reduce today’s fragmented delivery of care.

However, in an interview with FierceHealthcare, Kuehn explained why some of the survey respondents might be hesitant about different payment options.

“I think there is still a lot of angst in the system, fear of the unknown, particularly in the markets fully baked in the fee-for-service environment,” Kuehn told the news source. “As they start thinking about the payment mechanism, it scares them.”

Additionally, KPMG executives said that they plan to work with providers, health plans, and life sciences companies to address their short-term revenue challenges.

Dr. Cynthia Ambres, a partner and member of the KPMG Global Healthcare Center of Excellence, explained in the KPMG release that she is very aware of the concerns in the medical industry.

“Ultimately, all stakeholders who drive their organizations to achieve efficiency in operations, quality outcomes, adoption of supportive technology, and a patient-centric culture, will not only survive but see their margins grow in the future. Building the bridge to that future is the key now,” she said.



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