Representatives from Kaiser Permanente, Medtronic, Novartis, Qualcomm Life, and Takeda Pharmaceutical Company, as well as the minister of health of the Netherlands, the chief executive officer of the National Health Service in England and Harvard’s Michael Porter, are all calling for the change in healthcare.
Going to a value-based healthcare system puts the patient at the center of care and focuses on outcomes, the officials said.
The health leaders made the announcement the same time that the World Economic Forum, in collaboration with The Boston Consulting Group, released a report, “Value in Healthcare: Laying the Foundation for Health-System Transformation.”
Value-based healthcare is a popular and growing model aiming to move patient care from a service-based model to one focusing on health outcomes. The group of health leaders said value-based care isn’t just a way to improve outcomes, but also addresses rising healthcare costs.
The report suggests three foundational principles for value-based care: measuring outcomes and costs, focusing on population segments and customizing segment-specific interventions. Changes are needed for a value-based system in the areas of informatics, benchmarking, research, tools, payments and delivery organization, according to the report.
The first pilot program in Georgia includes 20 payers, providers, suppliers and government organizations. The project will create a value-based plan to treat heart failure in the Atlanta area.
Value-based care is seen as a possible solution, but health leaders also say there are challenges in the system. The CMS backs value-based care and has already converted 30% of its fee-for-service payment to a value-based model with a goal of 50% by 2018.
If a value-based system is to become a reality, it will need the CMS and national leaders working with health leaders to create a system that improves patient outcomes and helps the bottom line. This endeavor is too big to rely solely on hospitals, health systems, physicians and health leaders.