3 reasons healthcare executives are reluctant to adopt value-based care

Angie Stewart - Print  |

Value-based care adoption has stalled due to provider reluctance, according to Rita Numerof, PhD, president of global healthcare consulting firm Numerof & Associates.

Dr. Numerof told Becker's ASC Review that there are three reasons for the reluctance:

Note: Responses were lightly edited for style and clarity.

1. Fee-for-service is a comfortable framework for providers. "They may feel it's arbitrary and unfair to them — but they know the rules, how to play, and their prior experience reassures them."

2. Value-based arrangements and population health management remain largely undefined. "[Many providers] don't yet understand what they look like in practice and what the implications will be for them. They do know that these new frameworks will require changes in what they do and how they do it, and they will be accountable in ways they've never been before, and that's scary. Most executives expect that such approaches will have only slightly positive or slightly negative impacts on margins — so there's no great incentive there."

3. Lack of pressure. "Since many executives are more comfortable in the current structure (even if feeling margin pressure) than they are trying something new, and since they're not currently required by CMS to fully assume risk, there's not a strong case to innovate. The threat of disruption by nontraditional actors like Amazon, Apple and Google is a worry, but they have yet to pose an immediate threat. Unfortunately, willingness to embrace change is a function of net positive and negative drivers relative to the status quo, and for many executives, the status quo looks more attractive."

Want to share your thoughts on this topic? Email Angie Stewart at astewart@beckershealthcare.com.

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