Adam Solander Featured in Accountable Care News: Thought Leaders’ Corner

Accountable Care News January 2018

Adam C. Solander, Member of the Firm in the Health Care and Life Sciences practice, in the firm’s Washington, DC, office, was featured in an Accountable Care News Thought Leaders’ Corner, on the topic of “How Effective Are ACOs That Partner with Employers?”

Following is an excerpt:

While there has been a surge in employer adoption of value-based purchasing arrangements, these programs are in their infancy when compared to their government-sponsored cousins. With a few exceptions, employer value-based purchasing initiatives have been limited to very large employers.

With that said, there has been a number of successful employer, value-based purchasing arrangements. These programs have taken several different strategies to improve quality and reduce cost. For example, successful employer value-based programs have been built around direct contracting with providers on a procedure or disease condition basis, bundled payments, accountable chronic care management and more expansive, narrow network-based plans.

Based on publically available data, many of these programs have shown considerable increases in the quality of care provided, while significantly decreasing the cost of care.

The past year has introduced more innovative employer value-based contracting strategies to the market. There have been a number of structures that have moved beyond limited value-based purchasing to the creation of innovative plan designs based around incorporating provider value-based contracting with population health management and employee incentives for appropriately managing disease conditions.

What is clear at this point is that plan designs are available for innovative employers to leverage in order to reduce cost and improve quality. Ultimately, the success of employer ACO initiatives will depend less on whether there are value-based structures available and more on whether employers are willing to make a break from traditional fee-for-service arrangements. One key variable that with which employers will have to come to terms is that value-based purchasing might not be available nationwide.