Despite over a decade of investment and bipartisan support, widespread adoption of advanced alternative payment models in the healthcare industry is still far from a reality.
While providers are engaged in alternative payment models, these contracts don’t represent a significant amount of their revenue, according to a 2019 Numerof & Associates survey of 485 executives from provider organizations. Sixty-six percent of provider leaders said they have less than 20 percent of revenue in an alternative payment model contract. Additionally, just 25 percent of respondents said they were completely or very prepared to take financial risk in such contracts, which is much lower than what they predicted they would take on when asked the question in an earlier survey in 2017.
In a panel discussion sponsored by Signify Health at Modern Healthcare’s annual Transformation Summit on May 18, 2021, value-based payment experts representing physicians, consultants and insurers discussed two major factors that have prevented the industry from more rapidly adopting advanced alternative payment models: lack of transparency between providers and payers and poorly designed methodologies, causing uncertainty. During the panel, the experts also offered ways to solve these challenges, including strengthening payer-provider relationships and creating more predictable methodologies that encourage performance improvement.
Download the full recap below.