Our Latest Thinking

We are constantly scanning the health care market for new and interesting developments; then we write about them here. Check out our latest thinking.

A Uniquely American Health System
August 16, 2018

As the United States continues to move toward a value-based health care system, significant challenges slow down our progress. Political pressure exists from all sides, incentives have yet to be appropriately aligned, and the pressing need to change stakeholder behavior remains a time-sensitive imperative. Solving these challenges requires going beyond admiring the challenges to implementing […]

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Medicaid ACOs: Understanding Different State Approaches
August 14, 2018

Medicaid accountable care organizations (ACOs) differ from state to state. To understand these differences, Leavitt Partners developed a framework that explains four approaches states take to establish ACO programs. The framework considers the level of state engagement with the ACO based on whether a Medicaid managed care organization (MCO) exists in the state and the MCO’s degree of involvement. The framework can […]

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Health Care Markets: What Matters and Why
July 30, 2018

Many factors, including rising health care costs, the transition to value-based payments, and technological innovations, are causing the health care landscape to change rapidly. Health care entities seeking to understand geographic market-level changes or to expand into new markets not only encounter an increasingly complex environment, but also must contend with the unique dynamics of […]

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The Other Medicaid Drug Rebate News: Oklahoma’s State Plan Amendment
July 9, 2018

On June 27, 2018, the Centers for Medicare & Medicaid Services (CMS) approved a state plan amendment (SPA) authorizing Oklahoma’s Medicaid program to enter into value-based purchasing arrangements with drug manufacturers. The new SPA permits the state to negotiate supplemental drug rebates based on performance and outcome benchmarks as part of a value-based contract, which […]

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What is Driving Total Cost of Care?
June 25, 2018

In a combined quantitative and qualitative analysis of factors that may be influencing total cost of care in healthcare markets across the United States, researchers from the Healthcare Financial Management Association (HFMA), Leavitt Partners, and McManis Consulting found that: The penetration of population-based value-based payment (VBP) models is not yet having an impact on curbing growth in total cost of care. […]

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Executive Summary — What is Driving Total Cost of Care?
June 25, 2018

In a combined quantitative and qualitative analysis of factors that may be influencing total cost of care in healthcare markets across the United States, researchers from the Healthcare Financial Management Association (HFMA), Leavitt Partners, and McManis Consulting found that: The penetration of population-based value-based payment (VBP) models is not yet having an impact on curbing growth in total cost of care. […]

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Growth of Population-Based Payments is Not Associated With a Decrease in Market-Level Cost Growth, Yet
June 25, 2018

This paper examines whether the magnitude of population-based value-based payment (VBP) models is associated with decreased spending and increased quality at the market level. Using Medicare claims Limited Data Set (LDS) for 2012-2015 and Truven Health MarketScan Commerical Database for 2012-2014, we conducted growth curve modeling and fixed effects regression analyses to examine whether the […]

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Market Factors Associated with Medicare Costs and Cost Growth
June 25, 2018

Medicare costs in the United States are high and the rate of cost growth is increasing. However, there is significant variability between markets in per-beneficiary costs and the rate of cost growth. We used a variety of public and private data sources to assess which market factors were associated with market-level per-beneficiary costs and cost growth. Taken together, […]

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