Preventable hospitalizations are costing the US a fortune. In 2006, hospital stays that could have been prevented with proper long-term care made up $1 out of every $10 spent on hospital-based care. In Minnesota alone, preventable health care costs totaled $2 billion in one year. How can we avoid spending money on preventable hospital stays and visits? Here are 4 value-based care models we can try to start saving money and living healthier:
1. Accountable Care Organizations (ACOs)
Accountable Care Organizations have proven highly effective when it comes to reducing health care costs. Because the current system focuses on profits over preventive care, health care providers stand to make more money from unhealthy patients who require more visits, prescriptions, procedures, etc. Under an ACO there’s a network of health care providers and hospitals collaborating to reduce costs by focusing on the patient’s’ long-term health instead of short-term solutions.
2. Patient-Centered Medical Homes (PCMHs)
Patient-centered medical homes are similar to ACOs in that there is a network of professionals working together. However, with PCMHs health costs are reduced through the exchange of data as well as collaboration. Instead of having a one-on-one relationship with a primary care physician, patients will have a team of health professionals focused on them. In Colorado, the Multi-Payer PCMH Pilot reduced emergency visits by 15% and saw a $4.5 return on every $1 spent.
3. Pay Incentives
Some value-based health strategies offer pay incentives for physicians who reduce patient visits. This requires health care providers to focus on long-term health goals that will reduce their patient’s chances of needing costly procedures, emergency visits, or hospital stays.
4. Bundled Payments
Another cost-effective health care method is bundled payments or when a single payment is required for services related to a specific health care episode, even if it may require assistance from different providers. Bundled payments encourage patients to follow through with recommended care options because they know there is only one fee they have to pay for the whole process.
The Catholic Benefits Trust focuses on providing cost-efficient and value-based health care to organizations sharing Catholic values. All members of CBT are granted a seat on our Board of Directors so everyone has an equal say when it comes to managing costs. You can learn more about how CBT embodies Catholic values and reduces health care costs for our members by contacting us today!