Payment Reform Naysayers 'Better Wake Up'
More than a quarter of healthcare leaders have no faith that the shift to value-based payments is actually coming to their organizations. They're fooling themselves, says the CFO of a New York State healthcare system.
Vice President of Finance and CFO at Ellis Medicine
In the HealthLeaders Media Industry Survey 2014: Forging Healthcare's New Financial Foundation, 72% of respondents said they believe the industry will make the switch from volume to value-based reimbursement models.
That leaves 28% of healthcare leaders—a rather sizable chunk—who have no faith that this fundamental shift in how their organizations will be paid is actually coming.
Could they be right?
Absolutely not, says Daniel Rinaldi, vice president of finance and chief financial officer at Ellis Medicine, a 438-bed community and teaching healthcare system based in Schenectady, NY.
Rinaldi says hospital administrators are fooling themselves if they believe they can continue to operate forever in a fee-for-service world.
"We are seeing a dramatic sea change in our business, and those of us in an institutional setting better wake up," he says. "This is the most significant time of change that I have seen in my 40 years in healthcare."
In preparation for this move away from the fee-for-service framework, Ellis is developing an accountable care organization as part of a transition toward population health management, Rinaldi says.