Independent Provider's 'Strength' Strategy Keeps Options Open
To start preparing, LG Health hired an outside actuary to help it do the math—something Beeman sees as crucial for all healthcare organizations.
"The actuary helped us create a financial plan around taking risk and helped us to figure out what kinds of discounts we need in order to be successful and how much risk we can take on," he says. "Payers don't even have that information for you. Unless you have your own actuarial model, you could just collapse."
Beeman says LG Health is taking a "toe in the water" approach to risk-based contracting now so it can learn about the model gradually before the industry moves more fully to value-based purchasing.
"We wanted to get into it in a smaller way so we can tweak it so that when we really are in a different marketplace in the next three to five years, we have a better understanding of that model," he says. "We have an enormously talented group of physicians here … and they have given me tremendous confidence that the care providers that we have here will be well-positioned as an organization to respond to value-based reimbursements."
Looking Outside the Organization for Opportunities
LG Health is also looking outside its own walls for strategic partnership opportunities. The organization is a charter member of AllSpire Health Partners, a network of seven health systems in Pennsylvania and New Jersey that was formed last September.
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