Value-Based Care: Roadmap to Financial Sustainability in Healthcare
Healthcare providers face a basic financial problem. Fee-for-service reimbursement drops annually while operating costs rise. Increasing patient volume and billing for more services no longer covers the gap. On the other hand, Value-Based Care changes this by paying providers for keeping patients healthy rather than treating them after they get sick. Medicare shifted most spending to value-based models years ago, and commercial insurers followed the same path. Providers who keep diabetic patients' glucose controlled receive higher payments than those who only act after complications appear. This prevents readmissions and brings financial bonuses. Further, high readmission rates trigger payment penalties. The payment structure now rewards quality, and practices that switch early see better financial outcomes while others struggle with shrinking margins. What is Value-Based Care? Value-Based Care ties provider payment to patient health outcomes instead of service volume. Pro...
