Value based purchasing refers to reimbursement that is based on quality instead of quantity. In the past, the health care system in this country has been focused on treating the sick and paying providers for the number of services and procedures ordered.
This fee-for-service model is now transitioning into a value-based purchasing model that emphasizes how important it is to keep people healthy. It rewards healthcare organizations for providing the appropriate care unique to each patient’s situation. Rather than paying attention to how many tests and services have been ordered, healthcare entities should make an effort to keep their patients healthy.
Health care organizations have recently recognized the benefits of value based purchasing and used it to promote quality services. Let’s dive deeper into several of the benefits of value based purchasing in health care.
Coordinated Approach to Care
In the past, health care consumers have been frustrated and confused because they were responsible for managing their own care. In the value based purchasing model, they feel valued and engaged because they are supported by a coordinated care team.
With value based purchasing, patients have the right to hold medical providers accountable for service quality and costs. Value based purchasing plans pair information on medical cost data and patient outcomes in an actionable way.
The outcomes generated by value based purchasing plans ideally lead to improved health care services, insurance satisfaction, and healthcare providers that can compete in a competitive market.
Increased Patient Satisfaction
Value based purchasing focuses on reducing medical errors and rewarding the health care organizations that perform the best. It can lead to increased patient satisfaction which often indicates quality service.
Less Medical Errors
Unfortunately, medical errors are a serious concern in the healthcare industry. Insurance sponsors like large employers have realized this and started to incentivize medical providers with value based purchasing plans that result in less medical errors.
Promotion of Healthy Habits
Under value based care agreements, providers earn rewards by helping their patients improve their health, reduce the effects of chronic disease, and live healthier lifestyles. They can deter individuals from poor habits such as overeating, smoking, and cigarette smoking and help them lead higher quality lives.
Reactive care is delivered by healthcare providers in response to an illness or injury. Value based purchasing is different because it offers proactive care to prevent and treat conditions to keep patients healthy.
Contact Applied Medical Systems
If you have questions related to value based purchasing and how it may benefit your health care entity, we encourage you to contact Applied Medical Systems today.