At a recent meeting of chief financial and medical officers, one CMO said that before he’s able to get physicians on board with the idea that you can get better outcomes by following best practice vs. individual practice, he has to first help his physicians overcome the notion that “value” is just code for cost control.
The tipping point from volume to value is on the horizon. According to Leavitt Partners, 70% of providers will move to value-based payment models in healthcare by 2020. With less than 30% in the value-based camp today (also according to Leavitt Partners), clearly there is a lot of ground to cover during the next few years. But speakers and attendees at Leadership Perspectives: Best Practices in Clinical and Financial Collaboration say the change is coming. A program conducted by the American College of Physician Executives, the Health Financial Management Association and McKesson, Leadership Perspectives is designed to facilitate dialogue among chief financial and clinical leaders as they adapt to healthcare reform and navigate advanced payment models. It’s no surprise that the main topic of conversation, in each city where Leadership Perspectives has been held, is: How do I enlist physicians as true stakeholders in my organization’s financial performance and shift toward value-based payments for healthcare?
Progressive organizations such as UniNet Healthcare Network, Sharp Rees-Stealy Medical Group, Rush University Medical Center and Mercy Medical Center are meeting healthcare reform head-on. They use analytics to showcase and encourage best practices of top-performing physicians while steering low-performers toward a path of better clinical outcomes at lower cost. They’re also targeting patients, using analytics to stratify high-cost populations. And health coaches and navigators intervene to prevent gaps in care and direct care to the most appropriate setting – definitely not the ED and likely not inpatient. Because in the future, providers will shift from inpatient admissions (aka, volume) to attracting and retaining desirable covered lives through value.
Do you think the volume- to value-tipping trend is coming soon? Why or why not? Please leave a comment on this blog and let us know what you think.
To hear excerpts from Leadership Perspectives and find out what attendees are saying about CMO and CFO accountability for quality and financial metrics, visit our website.
 Value Based Market Intelligence Overview, Leavitt Partners, 2013