Despite Value-Based Care Growth, Room for Improvement Remains

November 17, 2023 - Healthcare organizations are becoming more familiar with value-based care, but opportunities remain to improve and expand upon the care delivery model, according to a survey conducted by Sage Growth Partners on behalf of Azara Healthcare.

The report, which RevCycleIntelligence received via email, reflects respondents from 91 healthcare leaders at independent physician groups, hospitals, and health systems. The results highlight the ways value-based care is working for providers and the potential opportunities for improvement.

The majority (85 percent) of healthcare organizations of all sizes reported being very familiar with value-based care and said they are actively working to expand its footprint. Large organizations were slightly more likely to say they were comfortable with the care delivery model (96 percent) compared to smaller organizations (79 percent).

Additionally, 70 percent of respondents expect that in three years, a significant share of their revenue will come from a mix of value-based care models.

Value-based care models present an opportunity for healthcare organizations to address social determinants of health. Almost half (46 percent) of organizations said they effectively leverage social determinants of health data, with this share higher among larger organizations at 62 percent.

However, the lack of standardization around collecting, organizing, and harnessing this data may lead to organizations having an unrealistic perception of their practices. While they may believe social determinants of health data is leading to effective interventions, screenings and follow-up initiatives may be inconsistent, the report noted.

Establishing standards around which data points are being collected, how they are being coded, and how to define follow-ups to address each need could help organizations ensure they successfully put their data to use.

Most respondents agreed their primary focus is patient care and outcomes (87 percent) or reducing costs (74 percent). Nearly 70 percent of large healthcare organizations said that value-based care is already positively impacting their financial health. Furthermore, 81 percent of large organizations and 59 percent of small organizations said they are willing to take on additional risk to improve patient care.

Although most respondents feel familiar with value-based care, many (73 percent) reported that their programs were only slightly or moderately developed instead of fully developed with a roadmap in place and a leader implementing the strategy.

This finding suggests that a standardized program benchmark could help practices track and monitor their progress relative to similarly sized organizations. In addition, organizations with less than fully developed programs should evaluate their ability to collect and analyze data, identify care gaps, and prioritize care management.

According to the report, value-based care models should include incentives for non-physician staff to help encourage participation. Seventy percent of respondents offer incentives for provider participation, while only 34 percent offer the same to non-clinical staff.

Non-clinical staff often conduct routine screenings and other front door tasks, making them a vital part of the value-based care journey. Improving incentives for these team members can help grow organizations’ value-based programs.

Half of large healthcare organizations and 61 percent of small organizations reported slow adoption of value-based care initiatives. Auditing existing programs can help organizations identify best practices and accelerate program expansion.

Assessing current programs can also help improve internal communication and allow stakeholders to be aware of the progress that has been made, the report stated.

As more healthcare organizations implement value-based care models, they must build a solid foundation that will set them up for success.