Shared savings delivers on the Triple Aim

As discussed in the last blog post, the healthcare system is moving away from volume-based payment models to one that promotes value, or achieving better results for patients and overall efficiency. An aging population, the rising number of people with multiple chronic conditions, skyrocketing healthcare costs and excess within the delivery system itself are just some of the urgent economic drivers leading to legislated reform. While there are several new payment models hospitals can choose from, one that has found wide success is shared savings.

At its core, shared savings offers incentives for providers to reduce healthcare spending for a defined patient population by offering them a percentage of net savings realized as a result of their efforts. Hospitals and providers that meet a set of quality standards and continue to hold costs below spending targets receive bonus payments including a portion of the savings achieved.

Allowing organizations to keep a portion of the money they save caring for patients does more than help the hospital’s bottom line. Advantages of the shared savings program include:

  • Hospital-provider alignment across clinical, financial and operational goals;
  • Provider-payer alignment;
  • Revenue for funding the development of delivery system skills and networks;
  • Ability to maintain market share, reduce leakage and to share in savings resulting from improved care coordination; and
  • Possible lower out-of-pocket costs to patients, improving satisfaction and loyalty

Hospitals must create economic incentives to motivate change. Shared savings models, such as bundled payments and gainsharing, can ensure that all stakeholders work toward the same quality and cost goals.

Hospitals need knowledgeable and trusted advisors like Implant Partners to educate them on the economic model that may be right for their organization. Once that economic model is identified, Implant Partners can direct the hospital to experts who establish baselines, track progress and payouts.

Want to learn more about how we are helping hospitals achieve shared savings at their organizations? Check out this Becker’s Spine Review article to learn more.

Shared savings