Value-based healthcare services have not only changed the patients’ healthcare standards but also the physicians’ payment model. Value-based reimbursement models encourage clinicians to adopt methods that make healthcare easy and efficient. Programs like MIPS & MACRA and more depict a value-based care system and allow physicians to achieve rewards and bonuses. The purpose is value-based reimbursement models are too.
- Straighten up physicians’ revenue cycle management
- Make patients empower the healthcare system where they choose their desired service
We have heard many of the benefits and the need for value-based healthcare models, but the proper information about the available models is not very common. Let’s review that.
What are the Available Value-Based Care Models?
There are a few types of value-based payment models with a variety of risks attached and benefits.
1. Accountable Care Organizations (ACO)
It is a system of hospitals, clinicians, and other healthcare providers to provide organized and high-quality services to Medicare beneficiaries. This entity helps patients receive up-to-the-mark services at the most appropriate time. So, it means that in case of emergencies or other scenarios, patients don’t have to wait to get to the relevant doctor.
This organization ensures that patient only bears expenses for those services that are absolutely necessary to treat an illness. Moreover, they reduce the redundant medical services by eliminating medical errors that occur while diagnosis or treatment.
Healthcare providers volunteer in this program to get shared savings if the ACO fulfills the standardized healthcare criteria with reduced expenditure.
Risk Factor Involved in ACO
It is not like ACO volunteers always end up adding a bonus to their revenue cycle, but the financial risk is also involved. When able to meet the requirement, physicians have a jackpot, but on the other side, they also have to bear shared losses if any.
For shared loss, healthcare providers have to pay Medicare as compensation for not delivering value-based care to patients.
This value-based reimbursement model is not just about value-based medical procedures but also supports volume-based services. However, the evaluation is based on quality, safety, and experience.
2. Bundled Payment for Rendered Services
This payment model pays physicians not for each service but as a whole series of services. Clinicians receive collective reimbursement for treating a medical condition, including all the charges for physicians and the types of rendered procedures.
If a patient undergoes a surgical procedure, CMS (The Centers for Medicare and Medicaid Services) sets a collective payment for surgeons, an anesthesiologist. It then pays a total amount rather than paying separately to each clinician.
Risks Attached with Bundled Payment Model
This type of payment model same as the ACO also has a certain level of risk involved. Physicians get to fill their pockets when they collectively reduce the incurred cost. Otherwise, they get will have to bear the loss.
Thus, this practice requires standardized procedures so that, all stakeholders get the rightful reimbursements.
3. Patient-Centered Medical Homes (PCMH)
It represents the healthcare payment model in which a primary care physician coordinates the patients’ healthcare. This payment model manages and handles all the needs of the patient in a centralized setting.
Its certification highlights that the physicians are capable of providing healthcare in a patient-centered setting with team-based methods. Moreover, it also ensures consistent care quality for patients.
Patients can develop a one-to-one relationship with their physicians, and it governs the medical and environmental factors.
This payment system has shown great potential in reducing unnecessary cost expenditure. According to a Maryland – based PCMH, via the efficient practice of this reimbursement model, they were able to save up to $98 million and enhance their quality standards by 10%.
Alternative payment methods other than the fee-per-service are not very popular practices. However, physicians are unable to meet their financial requirements. Thus, they are devising ways to incorporate new technologies into their system to speed up the workflow.
Yes! Different payment models allow different facilities against which healthcare service providers can improve their revenue cycle management. However, with flexibility comes various responsibilities and administrative load!
Clinicians can take help from a medical billing services company to optimize their payment in these matters. Of course, the focus of the healthcare industry is on value-based services and it should not be taken lightly at any cost. So, no matter whatever method you choose to associate yourself with, you must comply with all its requirements to survive.