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
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Show Me the Money: Profitability Through Value-Based Purchasing
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 > Show Me the Money: Profitability Through Value-Based Purchasing
BusinessFinanceHospital Administration

Show Me the Money: Profitability Through Value-Based Purchasing

Linda Ringquist
Linda Ringquist
Share
4 Min Read
Value-Based Purchasing
SHARE

Value-Based PurchasingSummary: Are you ready for a shift in risk from payer to provider? Will you be ready for value-based purchasing when it becomes required? Are you utilizing other reimbursement models such as bundled payments, Accountable Care Organizations, and Population Health Management?

Contents
  • Bridging the Gap Between Volume and Value-Based Strategies
  • New Delivery Models
  • What are the advantages or ultimate goals of value-based purchasing and other new delivery methods?

Value-Based PurchasingSummary: Are you ready for a shift in risk from payer to provider? Will you be ready for value-based purchasing when it becomes required? Are you utilizing other reimbursement models such as bundled payments, Accountable Care Organizations, and Population Health Management?

From a provider perspective, healthcare reform is aimed at tightening the purse strings, working more efficiently, reducing waste, and improving quality. The shift of risk has begun which will transform healthcare from a fee-for-service to fee-for-value. When the ultimate transformation ends, is still uncertain. As such, fee-for-service is still being utilized and providers are still generating profits and revenue based on the volume mentality while simultaneously trying to transition to a volume and quantity mentality. Juggling the opposite ends of the spectrum is no easy task.

Bridging the Gap Between Volume and Value-Based Strategies

In order to transition successfully, providers need to completely change their mindset and the way they do business – to acknowledge and embrace the cultural, information technology, and clinical changes which need to take place. From a cultural perspective, providers need to review and revise their strategic plan, ensuring buy-in from all levels of the organization from clinical to administrative and from leadership to front-line staff. Additionally, collaboration throughout the organization as well as with external providers and payers is a must. This will involve at the very least an investment in information technology such as electronic health records and health information exchanges to allow instant access to patient information for all applicable entities. Infrastructure may need to be revamped or enhanced to accommodate these new delivery models. Clinically, processes will need to be evaluated for efficiency. Training will need to occur at all levels of the organization. Buy-in from medical leadership will be key.

More Read

patient advocacy
Forget Patient Advocacy: Be a Patron of Patients
How to Secure Data in Healthcare
How Hospital Marketing is Thinking Beyond the Ivory Tower
10 Things Hospital Leadership Need to Know About Social Media and Marketing
HealthCare Marketing: Context is Everything

New Delivery Models

healthcare profitability

What are the advantages or ultimate goals of value-based purchasing and other new delivery methods?

  • Reduce waste
  • Reduce unnecessary or duplicate testing/services
  • Increase quality and better outcomes
  • Shift focus from volume to value and from quantity to quality
  • Highlight the critical role of primary care in coordinating care for patients
  • Center healthcare decisions around the patient, allowing for two-way dialogue
  • Level out the risk between payer and provider
  • Ultimately, patients will receive the right care in the right setting at the right time

Healthcare Reform is taking place whether you are ready or not. Beginning preparations before it becomes mandatory will put you ahead of the curve. What are you doing to adjust for the shift in risk and the change in reimbursement? Will you remain profitable or be left behind?

Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

a woman walking on the hallway
6 Easy Healthcare Ways to Sit Less and Move More Every Day
Health
September 9, 2025
Clinical Expertise
Healthcare at a Crossroads: Why Leadership Matters More Than Ever
Global Healthcare
September 9, 2025
travel nurse in north carolina
Balancing Speed and Scope: Choosing the Nursing Degree That Fits Your Goals
Nursing
September 1, 2025
intimacy
How to Keep Intimacy Comfortable as You Age
Relationship and Lifestyle Senior Care
September 1, 2025

You Might also Like

microscope
BusinessTechnology

Irony and the Church of Big Data

May 13, 2015

Cleveland Clinic Offering Global Care Air Rescue and Evacuation Services Program For an Annual Fee

February 25, 2011

SickKids & Social Media: Interview with Janice Nicholson

November 25, 2011
hospital web site
BusinesseHealthHospital Administration

Is Your Hospital Website Costing You Revenue?

September 30, 2013
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?