Value-Based Healthcare Needs New Bond Rating Metrics
Moody's other new indicators for value-based care include covered lives, employed physicians, Medicare readmission rates, all payer readmission rates, and risk-based revenues. Goldstein says that could change.
"This is just the beginning. There may be more introduced as we learn more," she says. "Some of the 20 we may discontinue. We may learn they aren't showing us what we need to know. This is very organic. We aren't done yet. There is more to come."
In addition, Goldstein says Moody's is pressing four objectives for hospital managers responding to the shifting business model: Achieving breakeven performance with Medicare rates; building scale through non-traditional methods; improved patient experience; and cultivating informed leadership.
Arrick says that despite the upheaval, the healthcare sector is attempting to position itself to succeed under a number of different uncertainties. He says the only certainty now is that change is the new normal in healthcare.
"The secret is if you can lower your costs faster than the revenue pressures coming at you, your numbers are going to be better," he says. "You look at the balance sheets and people haven't been borrowing quite as much. There is more cash on the balance sheets. This is all getting ready for what people perceive will be harder times ahead."
John Commins is a senior editor with HealthLeaders Media.
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