By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    physical health
    5 Ways Playing Games Can Improve Neural and Physical Health
    September 9, 2022
    Reasons For Hair Loss and Its Treatment
    Reasons For Hair Loss and Its Treatment
    February 16, 2022
    healthcare organization
    5 Actionable Strategies For Healthcare Organizations
    August 15, 2022
    Latest News
    Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
    May 16, 2025
    Learn how to Renew your Medical Card in West Virginia
    May 16, 2025
    Choosing the Right Supplement Manufacturer for Your Brand
    May 1, 2025
    Engineering Temporary Hospitals for Extreme Weather
    April 24, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    No Lack of Self Esteem
    August 26, 2017
    Boomers Reluctant to Curtail Lifestyle in Retirement
    September 13, 2017
    Germany’s No-Nukes Decision
    June 1, 2011
    Latest News
    Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
    May 18, 2025
    The Critical Role of Healthcare in Personal Injury Recovery: A Comprehensive Guide for Victims
    May 14, 2025
    The Backbone of Successful Trials: Clinical Data Management
    April 28, 2025
    Advancing Your Healthcare Career through Education and Specialization
    April 16, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Moving from Volume-Based to Value-Based Reimbursement
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Finance > Moving from Volume-Based to Value-Based Reimbursement
BusinessFinanceHospital Administration

Moving from Volume-Based to Value-Based Reimbursement

Andy Salmen
Last updated: September 1, 2014 8:00 am
Andy Salmen
Share
6 Min Read
SHARE

Patient_Satisfaction

5 initial Steps to improve operations and increase patient satisfaction.

The shift from a volume based reimbursement format to value based one is taking shape across the country.

Contents
5 initial Steps to improve operations and increase patient satisfaction.5 initial Steps to improve operations and increase patient satisfaction.

Patient_Satisfaction

5 initial Steps to improve operations and increase patient satisfaction.

The shift from a volume based reimbursement format to value based one is taking shape across the country.  Healthcare providers are being urged to move from payments based on quantity of services provided to payments based on the values of these services.

Quality and value are two terms that are not always well understood or differentiated.  Quality is generally thought of as a state of excellence and freedom from defects. It is rather subjective based on who is doing the assessment.  Value is often a relative assessment based on the monetary worth of an item.  In relation to quality, value can be seen as achieving a state of excellence (quality) in a cost effective manner.  In healthcare then, value represents increased excellence of service (quality of care) at a lower cost.  This is a dual challenge that healthcare professionals and facilities must meet.

The journey from volume-based to value-based reimbursement is not an easy one.  Providers need to identify new ways of interacting with patients and with each other, and must also find ways of eliminating waste in order to make the transition in an economically satisfactory manner.

More Read

Bundled Payments
Bundled Payments: Rewarding Quality and Value
mHealth on The Colbert Report: Dr. Eric Topol [VIDEO]
Handicapping the SCOTUS ACA Decision, Part II
Culture of Disrespect in Medicine Affects Patient Safety
Reining in Avoidable Readmissions

The following is a simplified 5-step journey from volume-based to value-based payment.

Step 1. Improve communications with your patients

Failure to clearly communicate a care plan with the patient has been blamed for a large portion of patient readmissions.  It’s been observed that patients are coming back or calling the provider to inquire about simple things such as follow-up care – something that could be communicated much earlier if there was a concrete care plan. 

Patients need to be informed as to what to expect after discharge.  This is a successful strategy to minimize costs associated with readmission.

Step 2. After discharge, give your patients a follow up call

A good way to communicate post-discharge care is to give the patient a call within 24-48 hours of discharge. This can help prevent readmissions and save related costs.  It also creates a closer connection between you and your patient. In the future, this patient will be happy to recommend your services to family and friends. You are also likely to capture medical issues quicker. 

Step 3. Help your patients in making better decisions.

Medical care cannot be treated as the be-all end-all of health care.  Indeed, a 2002 report discovered that medical care contributes just about 10 percent to longevity compared to 40 percent for behavioral patterns.

What this means is that care providers need to be thinking outside the medical care box and into other areas such as exercises, tobacco use, food, and other factors that directly affect a patient’s well being. 

Step 4. Alongside day-to-day needs, consider long-term business implications

Healthcare is extremely complex and often providers find themselves pre-occupied with immediate needs at the expense of long-term business needs.  You may find yourself so focused on day-to-day budgets and month-to-month activities to the point of forgetting to look at the overall cost structure that is present today and may be present in the years to come.

For example, you can consider using mid-level practitioners to help you provide better service to your patients. Ie.  Using a PA for follow up visits,  communicating the care plan and in discharging your patients.

Step 5. Eliminate non-value-added practices

Finally, providers must do all they can to eliminate all non-value-adding practices.  If reports from Dartmouth Institute for Health Policy and Clinical Practice are to be believed, then at least 40% of medical services provided in the country are NOT value-adding. 24% of defensive tests carried out by orthopedics are not of significant benefit to the patients and 35% of specialist referrals by these surgeons are motivated by defensive medicine. Orthopedic surgeons are advised to remove these unhelpful processes if they’re to move from volume based to value based services while not exposing themselves to litigation liabilities. That latter issue of litigation and liability is another issue in its entirety, one that is screaming for meaningful change in a myriad of arenas from medial liability laws to tort reform.

Summary

It’s not an easy process. Sacrifices and changes will have to be made along the way.  But the accrued benefits should be well worth the efforts.

Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

Clinical Expertise
Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
Health care
May 18, 2025
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
Health
May 15, 2025
Learn how to Renew your Medical Card in West Virginia
Learn how to Renew your Medical Card in West Virginia
Health
May 15, 2025
Dr. Klaus Rentrop Shares Acute Myocardial Infarction heart treatment
Dr. Klaus Rentrop Shares Acute Myocardial Infarction
Cardiology
May 13, 2025

You Might also Like

Don Berwick Controversy

December 5, 2011
business intelligence and medical billing
BusinessFinanceHospital AdministrationMedical RecordsOrthopaedics

Using Business Intelligence and Analytics for Orthopedic Billing

June 27, 2013
FinanceHome HealthWellness

Why Meal Planning Is Good for Your Budget & Your Health

July 29, 2019

TEDMED Day #1, Light on Medicine, High on Inspiration

April 11, 2012
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?