The unprecedented challenges facing healthcare organizations have put a spotlight on value-based care as a key factor to financially surviving the global COVID-19 pandemic—thanks to more stable revenue streams, as well as care coordination and data analysis capabilities.
Addressing the issue of steep declines in revenue resulting from delayed elective and non-urgent care, the Duke-Margolis Center for Health Policy developed an issue brief sponsored by the Robert Wood Johnson Foundation explaining how organizations were able to leverage value-based payment models.
“Organizations operating primarily under fee-for-service payment are experiencing significant drops in revenue and often do not have the capabilities in place to respond to the pandemic,” the brief says. “On the other hand, organizations engaged in value-based payment models have more stable revenue streams, and frequently have care coordination, telehealth, and data analysis capabilities in place that allow them to respond more effectively.”
The brief emphasizes the need for more opportunities to participate in value-based payment models that allow organizations to adjust their care approaches quickly during the pandemic as needs change.
“There have been racial and other disparities in the treatment and health outcomes of patients with COVID-19, and more work is needed to reduce those disparities and improve equity in care,” the brief also says, highlighting the need to monitor this as value-based payment models are rolled out more broadly.
Duke-Margolis also published a proposal for a COVID-19 Health Care Response and Resilience Program, developed in partnership with Families USA and United States of Care, to provide additional financial relief to healthcare providers so they may better meet the ongoing challenges, while also facilitating greater provider participation in value-based payment models.
The hope is that this would help healthcare providers invest in the capabilities (e.g., data and telehealth infrastructure) that can support effective COVID-19 detection and containment strategies as well as facilitate shifts to value-based payment models that will be more resilient to future public health crises.
Get more information and access any of these materials, in addition to the accompanying webinar, here.