Value-based healthcare has one goal: to make healthcare more efficient and cost-effective to patients. Instead of paying doctors and healthcare workers for the amount of tests they run and patients they help, professionals receive annual contracts and compensation — removing the incentive to rush and squeeze in as many people as possible at the cost of medical errors.
In an interview with the Texas Medical Association, Dr. Ronald S. Walters, an associate vice president of medical operations and informatics at The University of Texas MD Anderson Cancer Center in Houston, says that value-based care means achieving the best outcomes at the lowest cost.
"You want to provide the best quality product at the lowest price,” Walters says. “Most people want affordable, high-quality health care. And just like other markets, the people who can do that will be the winners.”
In addition, it’s becoming more popular for organizations to opt for a value-based healthcare platform. In just one year, the money spent on value-based healthcare grew by more than 70 percent. Hospitals, specialty practices and regional healthcare organizations are moving toward value-based payment efforts.
Why is the shift to value-based healthcare is happening?
The days of “fee for service” or volume-based services are nearing an end. Providing value-based healthcare is taking over this traditional model. Especially with the creation of the Affordable Care Act, the increase in individual insurance plans — as opposed to employer-controlled benefits — has also put consumers in a position to evaluate what they're getting out of their premiums. As such, your regional healthcare organization can't continue to use volume-based or cost-based marketing approaches to attract these patients. Instead, value-based strategies can help set you apart from national brands, attract more referrals and grow your revenue.
The challenges of value-based healthcare
Right now, healthcare providers are rewarding good behavior, but not penalizing mistakes. In order to progress a value-based approach, healthcare management professionals like yourself must realize that the strong benefits of this shift outweigh its initial costs. In the end, it will save you money and increase customer satisfaction. Read more of the challenges here.
The benefits of value-based healthcare
A value-based approach allows you to show patients exactly what you're bringing to the table when they walk in for an appointment. They will get a better sense of the work you do and they will be willing to pay more for better outcomes. You may face challenges as you adapt your strategies to this new market reality, but an experienced medical marketing agency can guide your way and keep you on the right path.
This is first installation of seven blogs that make-up our white paper, Master the Marketing Techniques of Value Based Care. Can't wait until next week to read the second section?