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Intel Report: Value-Based Readiness

News  |  By Jonathan Bees  
   August 02, 2016

Healthcare leaders are working diligently toward value-based readiness despite the challenge of building competency for a new model before it is financially viable.

This article first appeared in the July/August 2016 issue of HealthLeaders magazine.

After years of experimentation and study, the transition from fee-for-service to value-based care is finally gaining momentum, with large numbers of providers working diligently toward achieving its implementation. In fact, survey results from the 2016 HealthLeaders Media Value-Based Readiness Survey indicate that 94% of respondents are on a path to value-based care of one form or another, pointing to nearly universal acceptance of the mission.

On the other hand, while nearly every provider is engaged in this activity to a degree, not all providers are evolving at the same pace, and there is variability between organizations in terms of the level of commitment to value-based care activities. For example, approximately one-third (35%) of respondents say they are engaged in early efforts/pilot programs, another third (35%) say they are on a value-based direction, and 24% say they are somewhere in between. Only 6% say they are not currently pursuing value-based care.

Previous HealthLeaders Media research (2016 HealthLeaders Media Industry Survey) indicates that healthcare organizations' move to value-based care is progressing at a slow pace mainly because of inadequate payer incentives and uncertainty about the revenue stream—at 23% and 15%, respectively—but the picture is becoming clearer in this regard, and increasingly providers are making the leap and investing in their organizations in preparation for its arrival. However, while no one wants to be behind the competency curve when it arrives, it can be expensive to build competency for a new model before it is financially viable, which is why providers remain cautious.


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Jonathan Bees is a research analyst for HealthLeaders.

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