ACOs and Other Value-Based Purchasing Models Have Yet to Cut Costs

David Muhlestein provided insights regarding the three “What is Driving the Total Cost of Care?” white papers for a RevCycleIntelligence article entitled “ACOs and Other Value-Based Purchasing Models Have Yet to Cut Costs” and a FierceHealthcare article entitled “Report: Value-based payment models haven’t cut costs yet.” David told RevCycleIntelligence that, “Many healthcare providers began making changes in how they provided care for patients during the years of this study. But the penetration of value-based payments was generally quite low and appeared insufficient to drive market-level changes in cost growth for Medicare or commercial payers.” He suggested that impactful competition doesn’t lie with the number of competitors, but with how they’re competing for the FierceHealthcare article. “Meaningful competition doesn’t really mean dozens of different providers,” Muhlestein said. “A handful with similar market share…can aggressively compete on the Medicare market.” He also noted that “further research on costs trends crucial to painting a full picture.” (RevCycleIntelligence article here; FierceHealthcare article here). The three white papers have been highlighted in a number of other publications, including:

    • AJMC Managed Markets Network article entitled “Value-Based Payment Models Not Yet Reaching Full Potential, Study Says” here
    • Becker’s Hospital Review article entitled “Study finds no significant link between care costs and early penetration of value-based payment models” here
    • Healthcare Informatics article entitled “Analysis: Early Years of VBP Models Indicates Limited Impact on Cost of Care” here
    • Health Leaders Media article entitled “Value-based Models Don’t Reduce Costs at Market Level, HFMA Study Finds” here

Modern Healthcare article entitled “Fragmented markets inflate healthcare spending” here