Health care payment is solidly moving, or moving once again, toward pay for value or value-based contracting. This means a health care provider's reimbursement is incented or tied to a predetermined (typically annual) financial amount and/or is based on attaining certain quality care metrics. The Medicare Shared Savings Program and private sector "accountable care organizations" are both endeavoring to lower health care cost growth and improve quality and patient outcomes via these value or performance-based contracts.
During this 21-minute discussion Dr. David Muhlestein describes the various types of pay for value contract arrangements including use of quality metrics, what types of providers sign these contracts, what have the results been to date, the keys to success or what are the challenges in succeeding under these agreements and potential downsides for providers and/or patients .
David Muhlestein is the Senior Director of Research and Development at Leavitt Partners (LP). He directs LP's study of pay for value and accountable care contracting through LP's Center for Accountable Care Intelligence and leads the firms' quantitative evaluation of health care markets. He is an expert in using policy analysis, predictive modeling and applied analytics to understand the evolving health care landscape. His insights have been quoted by publications including The Wall Street Journal, The Seattle Times and Modern Healthcare. David earned his Ph.D. at Ohio State University and his JD at Ohio State's Moritz College of Law.
For information regarding Leavitt Partners' related work see: http://leavittpartners.com/solutions/.
What's the Status of "Pay for Value" Contracting: A Conversation with David Muhlestein (March 18th)