Penguins are Jumping …Payment Reform is Leaping!

…(The) 2014 National Scorecard on Payment Reform tells us 40 percent of commercial sector payments to doctors and hospitals now flow through value-oriented payment methods, defined as payment methods designed to improve quality and reduce waste. This is a dramatic increase since 2013 when the figure was just 11 percent. Suzanne Delbanco, Executive Director of CPR, in the Health Affairs blog. I’ve written before about what economists call “The Penguin Problem” — No one moves unless everyone moves, so no one moves. The healthcare Payment Penguin Problem goes something like this: Care Providers: “We’re hesitant to jump into the water. While we understand that fee-for-service payments are perverse, they ARE in our best economic interests. We won’t invest in infrastructure and processes toward value-based care until we believe payers are serious in making the transition.” Payers: “We’re hesitant to jump into the water. While we understand that value-based payments could improve quality and reduce costs, we don’t know whether care providers are serious in making necessary investments and changes. We also question whether they can pull it off. We’d like to see that providers are serious in making the transition.” Today’s message: The 2014 CPR National Scorecard for Payment reform documents that the Payment Penguin Problem has been solved! The implications are huge! (more…) The post Penguins are ...
Source: e-CareManagement - Category: Information Technology Authors: Tags: Health Policy/Reform payers payment penguin problem providers Source Type: blogs