Hospitals in pursuit of excellence

A Primer on Value-Based Contracting (Part 1) Sharing Insights from the New Hospitals in Pursuit of Excellence Guide

Health care is experiencing dramatic change as the nation's delivery system transitions to a value-based system from the fee-for-service approach. In the evolving business model, hospitals, health systems, physician groups and other health care providers will take on more risk, and more responsiblity for delivering defined services to a specific population at a predetermined price and quality level. New care delivery networks and value-based arrangements are emerging in communities nationwide. While the pace of change varies in different communities, health care organizations must be proactive or risk being left behind.

The terms of value-based contracts are significantly different than the fee-for-service arrangements. Experts from Kaufman Hall, co-authors of the HPOE guide, "Value-Based Contracting," shared insights on success requirements for hospitals and health care systems as they begin the move to value-based contracting arrangements. Part 1 offers guidance on how hospitals and health systems leaders can assess their preparedness to assume risk under value-based arrangements. It also reviews the numerous financial and operational considerations for health care providers entering into value-based care.

Part 1 Presenters:

• Moderator: Heather Jorna, vice president, health care transformation, HRET
• James J. Pizzo, managing director, Kaufman Hall
• Andrew S. Cohen, vice president, Kaufman Hall