Volume- to value-based care: Physicians are willing to manage cost but lack data and tools

Value-based payment models require physicians to deliver the best outcomes while managing resources appropriately. Physicians have long focused on quality of care, but in a relatively new development, they now have to pay attention to resource utilization as well, with the goal of reducing overall cost of care. To succeed at this, they need data on health care costs, tools to analyze costs related to outcomes, and aligned financial incentives.

• Sixty-six percent receive information on their own quality performance.
• Sixty-seven percent receive data on their own productivity.

But the situation is considerably different for cost-related information:

• Seventy-two percent of physicians consider cost data valuable, particularly at the point of care.
• However, only 28 percent receive cost information, such as cost or resource use for their attributed patients, for physicians and facilities to which they refer, or estimated patient out-of-pocket costs.
• Lack of information limits physicians' ability to perform certain tasks: Forty-three percent of respondents say they are not able to find low-cost lab and imaging options and 36 percent cannot identify high-quality skilled nursing facilities, rehab, or home health.

“You can't manage what you can't measure” is as true for physicians as it is for administrators. They need, and want, better tools to deliver value-based care. As data and analytics capabilities mature, sharing actionable insights with physicians can help them make better patient-care decisions. Health systems, health plans, and public payers have room to improve in sharing information with physicians, particularly on the cost of care.

A comprehensive toolkit that includes resource utilization and information related to cost of care could help physicians succeed under value-based care. Other tools might include technology and appropriate staff resources, improved processes, education, and care management support. Health systems should consider moving from simple bonuses to comprehensive performance management programs that include balanced score cards, goal-setting, rewards, and meaningful financial incentives.

Explore additional tools that could help physicians succeed under volume- to value-based care.