As providers transition to value-based care models, they must continue to balance the demands of care continuum, financial, and organizational performance strategies, HealthLeaders Media survey data shows.
Healthcare leaders have positive expectations for growth in value-based net patient revenue in the next three years.
The January/February 2017 HealthLeaders Media Annual Industry Outlook Survey, details responses from senior healthcare leaders who were asked about the challenges their organizations are facing as they transition to value-based care.
They were also asked to examine their care continuum strategies, financial strategies, and organizational performance strategies.
Among respondents who are fully committed and underway with value-based care or have experimental or pilot programs underway, net patient revenue is currently 18% value-based and 82% fee-for-service.
Looking ahead three years, prospects for growth in value-based net patient revenue are robust, with respondents expecting value-based payment models to account for 44% of net patient revenue while fee-for-service will account for 56%.
Survey data also indicates that, based on the size of the organization’s current total net patient revenue, large organizations (24%) account for larger shares of value-based net patient revenue than medium and small organizations (17% each). Across organizations of all sizes, the trend to more net patient revenue from value-based models in three years is also evident: large (48%), small (45%), and medium (39%)
As expected, respondents who say their organizations are fully committed and underway with the transition to value-based care currently are generating a greater share of net patient revenue from value-based models (29%) than respondents who say their organizations are involved in experimental or pilot programs (18%).
Those who say they intend to pursue value-based care but have not yet begun made up 7% of respondents; 3% said they are examining how or whether to pursue value-based care.
Expectations for value-based net patient revenue in three years follows a similar pattern.
Organizations that are fully committed and underway with value-based care expect to boost valued-based net patient revenue 25 points to 54%. Respondents who say their organizations are involved in experimental or pilot programs expect an increase of 27 points to 45%; those who will pursue value-based care but have not yet begun expect a boost of 26 points to 33%; and among those who are examining how or whether to pursue value-based care, the share of value-based revenue is expected to climb 16 points to 19%.
Jonathan Bees is a research analyst for HealthLeaders.