Misconceptions, Confusion, Naiveté, and Silliness Five Random Real World Observations on the Transition to Value Based Care Reimbursement Prepared for: HealthTechNet Scott Pickens Jamie Solak Arlington Healthcare Group May 20, 2016
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Moving Risk Doesn’t Increase Value Moving risk incentivizes cost cutting – not necessarily value.
True for all forms of risk transfer – bundles, shared savings, capitation
Some value impact from care coordination in effort to cut costs.
P4P must be added.
Old Business Model is Dead If it works, you eventually go out of business. Arithmetic doesn’t work. You save $1 and if you’re lucky you get back a portion of it. Then they move the bar.
Pop Health Yes. Wellness….Meh….. Sickest patients cost the most. Appropriate intervention can save the most. (DUH!).
Trick is to know where to draw the line in intervention investment.
Healthy people staying healthy incur less cost over time. (DUH!)
But don’t think there is a viable business model for wellness program investments unless you also believe in unicorns.
