Navigating the Shift to Value-Based Reimbursement: How Fast Is Too Fast, and How Slow Is Too Slow?

Abstract

Providers are struggling to understand how the macro-level changes occurring in the healthcare industry will affect them on a micro-level, especially as they pertain to the shift toward value-based reimbursement. This article presents a guide to physicians and practice administration, in both the private and hospital-employed practice setting, on how to effectively manage this shift from fee-for-volume to fee-for-value. It analyzes new reimbursement models, population health management trends, and second-generation alignment and compensation models to help the reader understand practical tactics and overarching strategies to prepare for the changing method of reimbursement in the health-care industry. The goal of this article is to provide clarity for decision-makers as they embrace the fee-for-value shift in a historically and predominantly fee-for-service environment.