Healthcare providers are shifting from volume-based reimbursement to value-based reimbursement to benefit patients, providers and the payer. The goal of this dramatic shift is to provide patients with the highest quality care at the lowest cost to them.

Volume Based Reimbursement

Traditional healthcare used volume-based reimbursement or fee-for-service (FFS) mechanisms. Unfortunately, this model led to many healthcare providers feeling the need to over-treat, over-medicate and over-spend in order to make their ends meet. If healthcare facilities needed to earn more, they had to do so by treating more patients. Many times, treating more patients meant providing a lower quality of care at the expense of the patient and the practice.

Value Based Reimbursement

Value based reimbursement holds patient care at the center and makes it easier for patients to get the care they need and only the care that they need.  This model pays doctors, hospitals and healthcare facilities for keeping patients healthy and improving the health of people with chronic illnesses.

What Will Change?

Healthcare providers need to focus on transitioning their business model to one centered around tracking patient data throughout networks. Patients should be encouraged to change behaviors and get healthier, not herded through to achieve high volume. In turn, patients with value-based reimbursement will be more invested in their healthcare and have motivation to improve. Financially, healthcare facilities need to transition to accepting value-based payments.

This restructuring period is a great time to have an evaluation performed on your facility’s systems to see where you can further reduce costs and increase efficiency. Vetters Enterprises specializes in practice management, revenue cycle optimization, and private practice business support. We can perform detailed assessments of your practice or facility and identify potential issues. Let us keep your business as healthy as you keep your patients! Give us a call at (443) 352-0088.