Value-Based Care Payments May Reach 60% in Next Five Years

Value-based care payments are quickly becoming a mainstay in today’s health insurance industry with more payers jumping on the bandwagon of bundles, alternative payment models, and accountable care organizations. A report commissioned by McKesson and conducted by ORC International showed that 58 percent of surveyed payers are moving toward complete adoption of value-based care payments, according to a McKesson press release.

This percentage has increased by 10 points since 2014, which means that even over the last two years, value-based care payments have grown in popularity. The survey found that payers predict a mix of quality-focused reimbursement strategies to encompass at least 60 percent of payment over the next five years. The reimbursement strategies include pay-for-performance, global payment or capitation, and bundled payments.

“Payers and providers are clearly beginning to scale VBR [value-based reimbursement],” Rod O’Reilly, President of McKesson Health Solutions, said in a public statement. “The swift pace of change, coupled with the daunting complexity of these payment models, is putting extreme pressure on the healthcare system. As we move beyond pilots, the ability for payers and providers to automate the complexity inherent in these models will be a deciding factor to success.”