HSC0003 Intro to Health Care for Volume-based Payments

Question 

Volume to Value

Moving from volume- to value-based payment methodologies can be challenging due to the cost of implementing them and to the variety of payment structures. The type of value-based program that works for one health care organization may not be the right fit for another. How do you as a health care executive determine the right structure for your organization? What do you need to take into consideration as you look at shifting from traditional payment methodologies to value-based care?

For this Discussion, review the resources for this week and reflect on the challenges health care executives might face when transitioning the payment methodology in a health care organization to a value-based model. Consider how the move to a value-based model might impact health care delivery for the health care organization.

With these thoughts in mind:

By Day 3

Post an explanation of how you, as a current or future health care executive, would choose a value-based methodology for the health care organization that you currently work in or one with which you are familiar. Describe the organization's current payment methodology, and explain your rationale for choosing to move to your chosen model. Be specific and provide examples.

Answer

As a health care executive, to simplify the payment mode of the health care organisation the most recommendable value-based model is the Fee for service payment model. This model will make all the payment services separated from each other. This model will help the health care organisation with fame, as the model will allow the physicians to get incentives separately and concentrate more on their care and treatment (Schroeder & Frist, 2013). This is a type of insurance, which depicts the fact that, the plan will either pay the health organisation directly or pay an individual, having a medical insurance claim for each expense. This process is easier and recommendable because an individual can visit any health organisation of their choice without any hesitation for money and get the desired treatment. However, value based payment is that kind of policy that the purchasers utilize in order to promote their health care services. The aim of using this policy is to shift from volume-based payments to outcome related payments. With the help of the fee for service model, it is easier to have the records of how many payments are scheduled. In spite of the fact that payments are not related to the improvement of the health condition of the patient still the approach is based around the patients (Porter & Lee, 2013). That is why there is a need of the traditional health insurance of Fee for service, helps in paying the required expenses, and gets the best help and treatment from the health care organisations.

References:

Porter, M. E., & Lee, T. H. (2013). The strategy that will fix health care. Harvard business review, 91(10), 1-19.

Schroeder, S. A., & Frist, W. (2013). Phasing out fee-for-service payment.