Despite spending twice what other developed nations spend on a per capita basis for health care, the United States has a longstanding trend of having lower life expectancy, greater prevalence of chronic disease, and overall poorer health outcomes. One proposed solution for this is to change the payment model of our health care system from the predominant fee-for-service (FFS) model, which reimburses services regardless of outcome, to a value-based model in which outcomes are reimbursed.
Value-Based Care Alone Won’t Reduce Health Spending and Improve Patient Outcomes
Nemours Children’s Health System has found that while a value-based care approach can decrease the costs of care for children with chronic conditions (when compared with a traditional fee-for-service model), transitioning to a value-based model involves added infrastructure and training costs. There’s also the complexity of delivering care in an industry that mixes together fee-for-service and value-based reimbursement. To deliver on the promise of improved health and reduced spending, value-based care must be augmented with a structured approach to eliminating waste, such as Lean innovation methods. Moreover, value-based care is most effective when delivered in conjunction with efforts to mitigate broader issues that create problems for patients, such as lack of transportation, inadequate housing, and inability to read prescriptions.