What Is the Promise of Value-Based Care?
Why should we adopt Value-Based Care? Here are some of the benefits. A less burdensome population, healthier communities, and lower costs are just a few. These promises are compelling. But what is the best way to make them a reality? The health care system has much to gain from this shift, but how can it best serve patients and reduce costs? Let’s examine the various benefits of Value-Based Care, healthcare big data, and the promise of value-based care.
Less disease burden
Value-based health care has come of age in the United States. The idea first came to light in the mid-2000s when Harvard economist Michael E. Porter, an expert in competitiveness and business strategy, suggested that our current health care system placed a high premium on quantity over quality. This system also failed to incentivize providers and was expensive and uncompetitive. And despite its many flaws, it did not produce world-class results.
The United States is the biggest spender in the world on health care, yet we rank lowest in performance, access, equity, and health outcomes. It is estimated that the United States will be bankrupt by 2024 unless the health care system changes drastically. This indicates that value-based care is an essential step in the right direction. However, it is still not a panacea, and there is a long way to go.
Building health services that improve community health requires a holistic approach. Healthy communities are communities where all services work together to improve health. This approach is critical in many different contexts, such as raising children, creating jobs, preventing violence, safeguarding the environment, and building a more just and equitable society. It also requires strong leadership. Ideally, leadership is collaborative and emerges from the community. But in practice, it may be a group or an individual. In any case, all should share leadership equally and allow for collective decision-making.
In today’s health system, only one in four physicians are African-American. This represents 13% of the population. The remaining 5% are women. Hence, we must empower PCPs to make a difference. We need more PCPs like them to help us improve our communities’ health outcomes. Luckily, this is becoming possible as more value-based care systems begin to focus on community health.
Changing payment models to reward value-based care is becoming a key priority for health insurers and providers. While a standardized fee-for-service payment system can help contain costs, value-based care can also improve quality and patient satisfaction. For example, a value-based care model may require a provider to spend more time on preventative care instead of chronic disease management, reducing costs by up to 16 percent. Moreover, providers are evaluated on meeting quality measures and patient satisfaction measures.
In addition to improving quality and reducing costs, value-based care can also help increase price transparency by making healthcare providers accountable for the total cost. Previously, this data was difficult to gather on a patient level. Knowing the price of a medical service empowers patients to budget appropriately. It also shows the value of preventive care since early detection of health problems can lead to lower costs. While focusing on outcomes, the broader concept of value-based care is still relatively new to health insurance providers.
The adoption of value-based care may positively affect quality and access to health care, but many questions remain. For example, despite compelling evidence, physicians and hospitals still don’t practice value-based care in enough places. Nevertheless, the concept has a lot of promise. This model rewards higher-quality care and reduces costs. In addition, it aligns with physicians’ intrinsic motivation and elevates their role as public health stewards.
Unlike traditional medicine, value-based care focuses on improving patient health rather than treating disease once it occurs. As a result, the approach can lower costs and increase patient satisfaction since healthcare providers are focused on prevention instead of treating an illness once it develops. As a result, patients experience fewer doctor’s visits and prescription drug costs, resulting in less overall healthcare spending. It can also reduce time and energy spent on chronic conditions.