The march toward value-based care delivery and financing will continue despite deep industry structural inertia, business self-preservation motives, and the shift in national politics. As we head toward 20 percent of US gross domestic product (GDP) being spent on healthcare, economic forces and federal budget math will demand the long-term transition to value-based healthcare delivery and financing. As health systems and physician organizations face this inevitability, they have two choices:
- Resist for as long as possible by clinging to fee-for-service (FFS) models and focusing on volume preservation; or
- Embrace the new reality and transform for competitive benefit by creating new competencies and accepting performance risk.
Principal, Lumeris Advisory Solutions
Senior Manager, Lumeris Advisory Solutions