As the healthcare industry continues to shift towards value-based care models, it's surprising to see that nearly half of companies don't plan to make any changes to their value-based arrangements in the next three years, according to a recent EY survey. This lack of action presents a missed opportunity for employers to drive healthcare cost savings and improve employee well-being.
Value-based care models tie cost to medical outcomes rather than volume, a significant departure from traditional fee-for-service arrangements. This approach has been gaining traction since the Affordable Care Act went into effect in 2010. However, with the increasing use of artificial intelligence (AI) to automate coding, costs for insurers are climbing. This is because insurers use codes to process claims, and the more complex the coding, the higher the costs.
As HR executives and recruiters, it's essential to recognize the potential benefits of value-based care for employers. By incentivizing providers to focus on quality and outcomes rather than volume, value-based care can lead to cost savings and improved employee health. This, in turn, can positively impact absenteeism, presenteeism, and overall workforce productivity.
The survey findings also highlight the need for employers to prioritize value-based care. Only 3% of companies are channeling more than 31% of their medical spending through value-based payment models. This suggests that many employers are missing out on the potential cost savings and employee benefits that value-based care can provide.
To capitalize on the potential of value-based care, employers should consider the following strategies:
- Educate themselves on the benefits and challenges of value-based care.
- Engage with providers to understand their value-based care approaches and how they can be leveraged to drive cost savings.
- Develop policies and programs that incentivize employees to prioritize their health and well-being.
- Monitor and analyze the impact of value-based care on employee health and workplace productivity.
By taking a proactive approach to value-based care, employers can drive healthcare cost savings, improve employee well-being, and create a more productive and engaged workforce.