Just two years ago, a majority of physicians expected that the trend toward value-based care would hurt their practices financially. In 2018, the numbers are more optimistic with many physicians seeing the emphasis on quality versus quantity and on practice efficiency as actually benefiting their practices. A poll conducted by KMPG in June 2018 found that 46% of the physicians participating saw value-based contracts as improving their profitability.
The KMPG poll involved 221 healthcare professionals who were asked several questions about value-based care and its impact on their practices, during a June 5 webcast. The results were then compared to a similar survey conducted in 2016 of 142 healthcare professionals.
As summarized in Becker’s Hospital CFO Report, the 2018 survey found that:
- Nearly half of healthcare organizations (46 percent) expect higher operating profits from value-based contracts, compared with 23 percent in 2016.
- Thirty-four percent of healthcare organizations expect value-based contracts to be neutral to operating results. That’s up from 25 percent two years ago.
- Twenty percent of healthcare organizations expect reduced operating profits from value-based contracts, compared with 52 percent in 2016.
- Overall, fee-for-service still remains the primary reimbursement method for healthcare organizations.
Matt Snyder, KPMG advisory principal who focuses on internal audit and enterprise risk at healthcare organizations, stated that “We are beginning to see performance based payment models replacing traditional fee-for-service models.” He added that healthcare professionals will need to focus on high quality healthcare service as well as transparent and secure data reporting capabilities if they want to succeed in the new value-based climate.
However, the trend toward value-based care is slow-growing. The “fee-for-service” model is still prevalent among healthcare professionals. The KMPG survey found that “Only 10 percent of respondents said they had a majority of their contracts tied to value-based reimbursement, such as shared savings, bundled payments (a flat-rate for a given medical procedure), or capitation for a given patient population.”