The government and commercial payer movement to value-based care and “the Triple Aim” of improved patient care focuses on improved population outcomes. The lowered costs may potentially hit the bottom lines of hospitals as we see continued move from feed for services to value based payment models.

Read Bruce Japsen’s Forbes piece for a perspective that the move to population health and away from fee-for-service medicine is working to the detriment of U.S. hospitals, a new report from Fitch Ratings indicates.

Many would argue that the move to value-based care is a good thing because it’s designed in part to eliminate unnecessary tests, procedures and inpatient hospital admissions long considered a waste when pay is based on volume of care delivered. The Fitch special 2018 report on nonprofit hospitals and health systems shows an industry slow to adapt to these changing reimbursement models.

Health insurers and the government are increasingly moving away from fee-for-service medicine to value-based payment models that measure outcomes and stress population health strategies designed to make sure patients are getting care in the right place, in the right amount and at the right time. This trend is designed to keep people out of the hospital, shifting reimbursement to outpatient models and putting hospitals at greater financial risk.

Source: Forbes

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