Healthcare organizations have already begun a transition away from volume-driven payments towards value-based payments, and it is predicted that many more will soon follow suit. In our last blog post, we proposed several key traits leaders will need if they are to effectively manage this volume to value transition: mission, vision, communication, motivation, and trust. These traits will become especially important given the numerous barriers to change these leaders will face.
Leaders embarking on the tall task of managing the volume to value transition need to be prepared for several roadblocks that will prevent change. These barriers include:
• Lack of accountability or managing care and cost of care
• Prevailing payment method is pay per unit of service
• Volume orientation of executives and physicians
• Psychological commitment to doing whatever is needed or wanted to care for patients, without regard for cost-effectiveness, efficacy, or quality of care
• High fixed costs—so hospitals need to keep beds filled and keep utilization of capital equipment high
• Inadequate data and systems
• No incentives for managing, maintaining, or improving patients’ health
• Little coordination of care
While substantial, these barriers are merely one piece of the puzzle, representing the initial challenges that will prevent many organizations from beginning to make this critical transition. Once an organization has actually agreed to shift towards more value-based payments, however, leaders will face new challenges.
In our next blog post (and the last in this series), we will discuss some of those challenges and how leaders can tackle them efficiently.
For more insights about this trend that you can present to your organization—or even just read on your own time—download the full presentation for free.