With the nation’s healthcare bill pushing nearly three trillion dollars a year, not only is the level of spending unsustainable, but the way physicians are paid contributes to the high cost of care. A 2013 report by The National Commission on Physician Payment Reform warns healthcare costs will only continue to spiral out of control unless the nation moves from a volume-based to value-based purchasing system.
Under today’s fee-for-service model, physicians are reimbursed for each service they provide. This system incents them to do more so they can be paid more, which drives up costs. By the same token, the system penalizes physicians who improve care so that patients need fewer services and stay out of hospitals.
The changing economy and healthcare legislation is quickly moving to a value-based model that rewards clinical efficiency and quality of care through:
- Pay for performance;
- Episode or bundled payment;
- Shared savings; and
- Capitation
The new payment models are changing the orthopedic industry as more physicians are rewarded for considering the cost-benefit and effectiveness of their chosen implant devices, instruments and procedures.
At Implant Partners, we think this is a great change. Our advanced business model facilitates hospital-surgeon alignment and strips out PPI bloat. The result? A reduction of implant costs by 40 to 70 percent, enabling hospitals to take charge of their budgets and procurement processes. In addition, this is done without compromising the clinical quality that surgeons and patients have come to expect.
How has your organization planned for the transition to value-based care?