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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 Co., Inc.’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.



Tavelli Co., Inc. has over 37 years of unparalleled experience in the debt collection and receivables management industry. Our mission is to achieve the right balance between getting clients paid and being empathetic to debtor circumstances, through implementing innovative practices, hiring experienced people, and improving business decisions through analytics. We provide peace of mind to all involved by collecting money with no complaints. Tavelli Co., Inc. takes the time to carefully listen to your customers and share their feedback with you through meaningful data and transparent communication, so you have access to the information you need to make quality decisions and improve your processes in the future. Contact us today and let the debt collection experts at Tavelli Co., Inc. help you set your business up for success.


IMPORTANT: Information provided by Tavelli Co., Inc., any employees of Tavelli Co., Inc., or its subsidiaries is not intended as legal advice and may not be used as legal advice. It is not intended to be a full and exhaustive explanation of the law in any area, nor should it be used to replace the advice of your own legal counsel.

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