Impact of new payment scheme on healthcare providers

BVWireIssue #141-4
June 25, 2014

Valuations of healthcare providers continue to get trickier as the reimbursement landscape changes. Reimbursements are the payments insurers make to doctors and hospitals for services rendered.

Balance will tip: Payers and hospitals expect that, within five years, new value-based payment models will eclipse the traditional fee-for-service model, a new survey reveals. They anticipate that two-thirds of payments will be based on complex reimbursement models with value measures by 2020, according to a new study commissioned by McKesson and conducted by ORC International.

The study, the 2014 State of Value-Based Reimbursement, found that 90% of payers and 81% of hospitals currently offer a mix of fee-for-service and other reimbursement models. To get a copy of the study, click here (free registration required).

Financial impact: How will value-based reimbursement models impact the financial health of payers and healthcare providers? The study found 60% of payers believe making the transition to value-based care will have a positive financial impact on their organizations. At the same time, only 35% of providers believe value-based models will have a positive impact financially.

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