Our healthcare system primarily follows the fee-for-service model, where the patient pays for all their services. This service model aids in causing a conflict of interest from the patient’s perspective as it focuses more on the quantity of services provided rather than the quality.
Keeping overall progress and development in mind, the healthcare industry is turning towards a value-based health care system. The slow steps towards the future will avail a better and more high-quality service-centric healthcare system.
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What is a Value-Based Health-Care System?
This model promotes quality of the services over the quality, thus motivating the healthcare providers to help their patients recover effectively from any ailments or chronic diseases and live on for long, healthier lives.
The “Value” in this model refers to the quality of the services provided and how it aids in the betterment of the patient. This is a more patient-centered model that focuses on patient value and not the cost of services offered.
Benefits of Value-Based Health-Care System
The value-based healthcare model provides benefits to one and all. Ranging from increased patient satisfaction, decreased healthcare costs, and reduced risks, value-based healthcare has tremendous benefits.
Better healthcare at lower costs: Getting treated for chronic diseases like cancer, high blood pressure, COPD, diabetes, and others can get time-consuming and highly expensive for the patients. But with a value-based healthcare system, the emphasis is more on the recovery of the patients from dreadful diseases. This model aims to prevent the conditions, resulting in fewer visits to the doctor’s, more periodic medical tests and procedures. Hence the end results are cost-effective treatments for even chronic diseases.
Highly efficient services and higher patient satisfaction: The prevention-based patient service by the healthcare providers avails them to cure and prevent chronic diseases in lesser time and have better health management. The focus on the value over the quantity helps improve the quality and patient engagement measures. The providers do not face any financial risk under the value-based health care model as the model ensures influential and significant rewards for the healthcare providers.
Less risk and cost-efficient: The improvement in healthcare avails a reduced risk of any spreads amongst the population, thus resulting in a healthier population overall—a healthier population results in fewer claims on insurance, premium pools, and investments. The payers of the system are enabled to increase the efficiency by bundling the payments instead into the patient’s complete health care cycle or for any chronic condition that may last for a more extended period of time.
The suppliers align prices to the health outcomes: The profit of the suppliers always lies in maintaining their products and services with positive patient outcomes and reducing costs. Many healthcare industries are tying up with manufacturers to develop and avail drugs to the patients of their actual value; this will become a common practice with the development of more individualized therapies.
Healthier society and fewer healthcare expenditures: The value-based healthcare systems allow less spending to manage chronic diseases and cut down on costly hospitalizations and medical emergencies—a healthier community results in a healthier and more progressive nation. The inclusion of value-based healthcare helps in reducing the overall cost spent on healthcare.
What does the future hold?
The transition from fee-for-service to fee-for-value will take time for the healthcare systems to adapt. And for some systems, it has not proven easier than expected. The change may result in a short term financial hit for the healthcare landscape in adopting value-based care models. However, in the end, the value-based health care system will allow the world to flourish better and lead healthy lives. The better the quality of healthcare, the more developed the nation.
Putting the patient’s health and all other needs at the top results in an improved pace of recovery and customer satisfaction. Starting at one healthy individual at a time, the value-based healthcare system can build up a healthier population with consistent practices and devotion to the services provided.