Case 4: Value-based health systems Flashcards
What is the definition of value?
Multiple definitions:
- patient health outcomes achieved per dollar spent.
- health outcomes achieved that matter to patients relative to cost of achieving those outcomes
What is the problem with the definition of value saying “Value → patient health outcomes achieved per dollar spent”?
- limitations in context of UHC systems funded through social insurance or taxation.
- Focusing only on funds spent on each patient’s cycle of care doesn’t take account of available resources & how they are allocated across population
What are the current issues with value?
- difficult to measure & deliver value
- Providers measure only what directly control in intervention & what is easily measured, instead of what matters for outcomes
- no clear definition
Why do we need to consider value in HC?
Resources are increasingly outstripped by demand for HC. driven by:
- changing population demographics
- innovation & new technologies
- patient expectations
- increase in multi-morbidity.
How do we measure value?
- measured by outcomes achieved, NOT by # of services delivered or by process of care used.
- Health status achieved
- Nature of care cycle and recovery
- Sustainability of health
What are the 3 tiers in the 3 tiered hierarchy of outcomes?
- tier 1 - health status achieved or retained
- tier 2 - process of recovery
- tier 3 - sustainbility of health
Explain the tier 1 of the hierarchy of outcome measurement
health status achieved or retained
first level = survival of the health issue
second level = degree of health recovery → most important tier
What are the trends in health & healthcare?
- From treatable → preventable
More attention to:
- prevention relative to treatment
- QoL than extending life expectancy
- shared decision making & value for patients: patient centred care, not physician centred care
Why are HC systems so inefficient & not patient centered?
- Practice variation
- Overtreatment
- Administrative costs
→ root cause: payment NOT based on patient values
What are the reasons for practice variation & overtreatment?
- Payment is not based on what patients value
- Fee-for-service payment systems
- Rewards quantity, not quality
- Incentive to perform more interventions
What is fee-for-service (FFS)?
method where HC providers are paid for each service performed. E.g. of services include tests & office visits.
What are the advantages of FFS?
- Incentive for productivity
- Financial recognition for achievement and effort
What are the disadvantages of FFS?
- Incentive to perform as many medical interventions as possible (unnecessary interventions)
- Incentive to carry out treatment yourself and not to refer patients to medical specialist (no optimal treatment) - make more money yourself as practitioner
- Quantity is rewarded, not quality
What is VBHC?
“equitable, sustainable & transparent use of available resources to achieve better outcomes & experiences for every person”
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By focusing on health outcomes, what does VBHC do?
- helps HC providers manage cost increases
- make the best use of finite resources
- deliver improved care to patients.
What are unwarranted variaitons in HC?
Differences in… that aren’t explained by patient preference or illness:
1. resource allocation
2. resource use
3. outcomes in health
- Associated with overuse/underuse of health technologies & care
What can unwarranted variations show?
- where resources might be wasted
- underuse or overuse of care
- opportunities to increase value.
What are the types of value based payment models?
- Bundled payments
- Pay-for-performance
- shared savings
- shared risk
- Global capitation
Explain bundled payments as a value based payment model
- fee for period of care instead of paying for each individual service delivered in the care cycle
- Can be combined with shared-savings or shared-risk components
Explain pay-for-performance as a value based payment model
- often implemented together with FFS payments, to make more value-based.
- payments reward HC providers with added bonuses if they achieve specific targets set by payers for quality and costs of care.
Explain shared risk as a value based payment model
providers share financial risk with payers based on predefined quality & cost targets
Explain shared savings as a value based payment model
providers receive a share of cost savings achieved by delivering high-quality care at a lower cost
How can we transform into value-based systems?
- VBHC model requires paradigm shift from supply-driven HC system organised around what physicians do → patient-centred system organised around what patients need.
- Shift focus from volume & profitability of services provided → patient outcomes achieved
- 6 elements of patient value model from Porter