For hospitals, health systems, and physician groups deciding how to pay physicians, value-based care ties compensation to the quality and cost of care instead of the volume of services.
As financial pressure builds across the industry, more organizations are treating these models as part of their core strategy.
In “Hospitals Turn To Value-Based Care Amid Headwinds,” Law360 Healthcare Authority examined why health systems are adopting value-based arrangements to improve their finances and retain physician talent. Christine Burke Worthen, Member of the Firm of Epstein Becker Green and counsel to health systems on value-based payment arrangements and CMS payment models, discussed how provider attitudes are changing.
The article pointed to 2021 changes to the Stark Law and Anti-Kickback Statute that gave health systems more room to tie physician pay to value. It also cited mandatory CMS models that hold hospitals accountable for cost and quality.
Christine said CMS has been clear that it wants more providers in value-based arrangements by 2030, and it has pressed for wider participation in mandatory models to get there. Change is hard, she said, but providers increasingly accept that traditional care delivery is not working. She described how widely that view is held.
“I think everyone recognizes that value-based care is here, and it is a reality,” Worthen said.
She added that remaining firmly within fee-for-service is not a workable approach.
Get in Touch
To discuss how value-based care arrangements and CMS payment models may affect your organization’s physician compensation, contracting, and compliance planning, contact Christine Burke Worthen at cworthen@ebglaw.com.
