Health Care Stakeholders and Payors Weigh in on Future of Value-based Payment > Hospital Association of Pennsylvania

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Health Care Stakeholders and Payors Weigh in on Future of Value-based Payment

May 21, 2019

A recently released Industry Pulse Survey by Change Healthcare and the HealthCare Executive Group indicates nearly two-thirds of responding hospital leaders, third-party administrators, health plan executives, academics, and other stakeholders believe the transformation to value-based payment is likely another three to five years away. This is Change Healthcare’s ninth annual national survey, which spotlights what payors and other health care stakeholders view as the top challenges facing the industry, as well as greatest opportunities for positive change. 

Value-based payment represents the shift away from paying health care providers for the volume of care they deliver to the quality of the care delivered. The shift was accelerated following the passage of Affordable Care Act (ACA) during 2010. The ACA created the Center for Medicare and Medicaid Services Innovation to experiment with new innovative payment models that align incentives with care delivery approaches that focus on high-quality, low-cost care.

The barriers to this transformation were highlighted in the report of survey findings and include issues at the very heart of Pennsylvania hospitals’ struggles with moving to new payment models, namely:

  • Limitations in data sharing
  • Proliferation of outcomes measures
  • Lack of aligned incentives

The Industry Pulse Survey identified ways that payors could better support providers as they transition to value-based contracts including:

  • Standardizing quality and outcomes measures
  • Co-developing payor-provider risk management programs  
  • Sharing performance data
  • Co-developing bundled payments around episodes of care

At the end of 2017, HAP issued its first report on Pennsylvania’s use of value-based payment identifying these same barriers and opportunities.

HAP continues to elevate these issues with both public and private payors and is investigating other opportunities to impact the current limitations.

For additional information, contact Kate Slatt, HAP’s senior director, innovative payment and care delivery.

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