Value-Based Care Vs. Fee-for-Service: The Key Differences

Here is a little story! Dr. Sarah Chen - an expert working for years sighed as she reviewed her patient's chart. Mr. Johnson's diabetes was poorly controlled. Due to this, there were frequent hospitalizations in the past few months. She knew he needed more support between visits. Unfortunately, the fee-for-service model didn’t permit that. Naturally, there had to be a better method to care for clients like Mr. Johnson without jeopardizing the clinic's financial stability.

The Current State: Fee-for-Service

Fee-for-service (FFS) is straightforward in its mode of action. ‘Service providers get incentivized for each service they deliver, regardless of the outcome’. Although this system guarantees payment for services completed, it has several noteworthy shortcomings:

• It incentivizes quantity over quality
• There's little focus on preventive care
• It can lead to unnecessary tests and procedures
• It doesn't reward coordination among healthcare providers

What is Value Based Care? Why is It Important?

Value-based Care (VBC) is causing a major move in the medical community. This model links payments to the standard of care and patient outcomes instead of the acquisition of specific services. It's a comprehensive strategy that seeks to:

• Improve patient health outcomes
• Reduce the cost of healthcare
• Enhance patient satisfaction
• Facilitate preventive care 

Key Differences Between Both Models 

Aspect	Fee-for-Service	Value-Based Care
Payment Structure	Based on the volume of services	Based on quality & outcomes
Focus	Treating illness	Preventing illness & promoting health
Patient Engagement	Limited	High priority
Care Coordination	Often fragmented	Emphasized and rewarded
Use of Technology	Variable	Essential for data tracking & analysis
Risk	Borne primarily by payers	Shared between providers & payers

Shifting Toward Value-Based Care Program 

It takes more than just flipping a switch to implement value-based care. Monitoring patient outcomes, doing data analysis, and coordinating treatment amongst various providers all call for a strong infrastructure. A value-based care platform can help in this situation.

It helps healthcare organizations:

• Collect and analyze patient data from multiple sources
• Identify high-risk patients who need intervention
• Track quality metrics and patient outcomes
• Facilitate care coordination among different providers
• Generate reports for quality improvement & regulatory compliance 

Takeaway 

All in all, value-based care provides a way forward for a future that is more pragmatic, effective, and patient-centered. Persivia provides a full value-based care solution for healthcare businesses trying to successfully manage this shift. Our platform offers the resources and insights required to prosper in the evolving healthcare environment.

Join forces with Persivia to discover the power of patient-centered, data-driven treatment.