Insurers, docs speed up shift to value-based care
While many doctors still operate on a fee-for-service basis, insurers are moving toward value-based reimbursement that focuses more on quality, transparency and accountability, reports Forbes.
Payments based more on quality of care has led to primary care physician compensation totaling more than $232,000 in 2013, while specialist compensation rose to more than $402,000, according to the latest data from the Medical Group Management Association, notes Forbes.
The data show that even for primary care doctors who are not part of an accountable care organization or a patient-centered medical home, an average of 5.96 percent of their 2012 compensation was based on quality measures. Moreover, the data suggests doctors are ready to report quality measures to commercial payers and the federal government, according to the article.
Across the United States, value-based arrangements have become the normal for payers and providers, reports The Motley Fool. WellPoint has more than 110,000 contracted physicians and more than 100 ACO-type organizations, compared to less than 50 ACOs a year ago. UnitedHealthcare's accountable care contracts total $30 billion, and the insurer expects this number to top $65 billion by the end of 2018, notes The Motley Fool.
While 90 percent of payers and 81 percent of hospitals already implement a mix of value-based reimbursement and fee-for-service, payers expect FFS to decrease from 56 percent to 32 percent in five years, while hospitals anticipate a decrease from 57 percent to 34 percent.
As fee-for-service continues to take a hit, the need for value-based care is pressing. Insurers should speed up the adoption of value-based reimbursement so the entire healthcare industry can implement systems-engineering principles that will boost efficiency of care, according to a recent report from the President's Council of Advisors on Science and Technology, FierceHealthPayer previously reported.
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