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What is Value-Based Health Care and What It Means for You

Healthcare and the rising cost of health coverage have been a topic for decades. There is an increasing recognition that the traditional fee-for-service model, in which healthcare providers are paid for the number of procedures they perform, is not sustainable in the long run. This model has led to a fragmented, siloed approach to healthcare delivery, with little coordination or collaboration between different providers. This, in turn, has contributed to rising healthcare costs and inconsistent quality of care.

United States doctors are more likely to have trouble getting their patients medication or treatment due to restrictions on insurance coverage, even though the U.S. spends most of its gross domestic product on health care. In 2021, healthcare spending grew 2.7% reaching $4.3 trillion, which is about $12,914 per person. 

So what is being done to help alleviate the burden? 

Value-based care has emerged as a major paradigm shift in the healthcare industry, with hospitals at the forefront of this change. Rather than simply providing treatment for patients, value-based care emphasizes the delivery of high-quality, patient-centered care that is both efficient and cost-effective. This approach aims to improve patient outcomes, reduce healthcare costs, and enhance the overall healthcare experience for patients.

Value-Based Healthcare is a delivery framework that incentivizes healthcare providers to focus on the quality of services as opposed to quantity. Under this model, providers are compensated based on the patient's outcome, this includes hospitals and physicians. This is different from a fee-for-service model, in which providers are paid based on the number of services they provide. 

According to NEJM, there are many benefits to value-based care. It can extend to patients, providers, and payers. 

  • Patients: Patients will spend less money to achieve their health goals. Value-based care models focus on helping patients recover from their illnesses or injuries more quickly and avoid chronic diseases, as a result, they will spend less time in the doctor's office, and feel empowered to take an active role in their own care.
  • Providers: Providers will have greater patient satisfaction. When providers spend more time on their patients, quality, and patient engagement increase
  • Payers: Control costs and reduce risk. When there is a healthier population, there are fewer claims to be filled, which will save payers money. 

One key component of value-based care in hospitals is the use of data and analytics to inform decision-making. By collecting and analyzing data on patient outcomes, hospitals can identify areas where they can improve care and reduce costs.

How does this value-based care affect your staff?

Clinicians and healthcare providers have always looked out for their patients, so this new model will most likely not change the way your staff completes its everyday duties, but it could change their workload. With fewer patients to care for, clinicians can provide better care and have a more positive impact on their patients. This can likely increase job satisfaction and can lead to less fatigue and less turnover. Overall providing a better work environment and professional growth for clinical staff. 

For hospitals, implementing a value-based care model requires a fundamental shift in the way they operate. Rather than simply treating patients and moving on to the next case, hospitals must take a more holistic approach to patient care. This may involve a range of initiatives, such as care coordination, patient education, and preventative care.

About FleetNurse

FleetNurse helps improve staffing levels and reduces staffing-related costs for facilities while providing nurses and nursing assistants flexibility in their work lives. Using innovation and technology, FleetNurse has become a trusted labor partner that helps health systems streamline the process of getting open shifts filled by the right person at the right time.