The Impact on the Financials of a Health System Transitioning to Value
Health systems across the country are facing tremendous financial pressures—from maintaining operating margins and profitability, to facing a shifting payer mix and stagnating reimbursement rates. These trends are creating challenges for health systems steeped in fee-for-service (FFS) care delivery. As a result, many systems are taking a hard look at their existing business model to find a path toward a sustainable financial future.
This paper analyzes the financial impact of a heath system moving to value-based contracts and the risk of maintaining the status quo. In addition, it is critical for health systems and providers to develop the required capabilities to drive clinical and financial outcomes—which can be accelerated by working with an operating partner.