Healthcare’s Shift To Value-Based Payment Models
The traditional payment model in the healthcare industry is fee for service, but that's starting to change. More providers are looking into value-based care, which can lead to better patient experience and outcomes.
Value-Based Care Versus Fee for Service
Value-based care places emphasis on the quality of the service that the patient receives, rather than maximizing the quantity of what's delivered. Fee for service care charges individually for everything a provider delivers to a patient, while value-based care has payments charged based on the quality of care throughout treatment. Value-based models also look at how efficient and effective the process is for patients. It focuses on quality (value-based care) versus quantity (fee for service), which transforms the way medical organizations operate.
The Shift to Value-Based Care
Several factors are driving the change to value-based care. Patients are focused on finding ways to lower how much they pay for their healthcare, and Accountable Care Organizations identify ways to keep patients healthy and out of the hospital through proactive and preventative care.
Benefits of Value-Based Care
Healthcare organizations gain several benefits from this payment model. Patients receive better care, that helps their health which can improve provider’s reputations. Patient costs also lower because they're not paying for everything on an individual basis. Providers also cut down on excess paperwork.
Challenges of Adopting a Value-Based Care Model
Moving to a value-based care model is not without its challenges. Healthcare administrative processes will need a major overhaul and providers will need more staff members to handle a higher preventative care workload. Since providers focus on the overall outcome to the patient, medical practices may have more visits that involve preventative care to lower the chance of the patient needing to go to the hospital or developing a serious illness.
There also needs to be an effective way to measure the value provided to patients to calculate costs, which is far more complex than simply charging per service provided. It's possible that providers will need to procure new software that supports value-based care models, which can add significant costs and slow the adoption process.
Tavelli Company’s Value-Based Receivables Model
Healthcare providers need to be prepared to explain the changes to patients, as this model can be significantly different than what patients are used to. Clearly emphasizing the benefits that patients should get them on board with this shift. In addition, providers should look to trusted collection agencies and receivables management partners who align with their value-based model.
At Tavelli Company we operate under our value-based receivables model. The debt collection process transforms from a transaction into real value for our clients because we find out why patients are not paying to prevent future bad debt while we work to find financial solutions.
Our value-based receivable model improves patient and client financial outcomes as it aligns with our healthcare provider’s focus on quality rather than quantity which improves patient experience and brand loyalty. Contact Tavelli Company today for a free evaluation to see how we can help you.