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Rising Interest in Value-Based Care

A recent survey commissioned by Sage Growth Partners highlights a significant shift in the attitudes of healthcare executives regarding value-based care (VBC). Despite an overall sense of stagnation in progress, a remarkable 77% of C-suite leaders from hospitals and health systems indicate plans to increase their participation in VBC over the next two years.

This finding is part of the third installment of a series focused on the evolving landscape of VBC, which examines how financial pressures and operational challenges impact healthcare delivery models. In comparison to previous years, the latest report indicates a notable uptick in the number of executives recognizing the importance of VBC for the quality of care and cost management.

Key Findings

Key insights emerge from the report, such as:

• - Only 20% of the surveyed leaders believe that there has been meaningful progress towards the implementation of VBC over the last two years, which is a decrease from 37% in the prior year.
• - A significant portion, approximately 69%, reported being involved in Accountable Care Organizations (ACOs), up from 53% in 2023. Furthermore, 61% are utilizing bundled payment models, showing an increase from 46% in 2023.
• - While there is an optimistic shift towards VBC, many hospitals and health systems still lack substantial revenue at risk, with 54% generating only 5% to 20% of their total revenue from VBC contracts.

The Challenge Ahead

Dan D'Orazio, the CEO of Sage Growth Partners, asserts that while the journey toward VBC is challenging, it offers substantial potential for healthcare organizations facing fiscal pressures. He emphasizes that the effective adoption of VBC requires a strategic approach that encompasses operational, clinical, and financial investments.

Stephanie Kovalick, Chief Strategy Officer at Sage Growth Partners, adds that balancing the obligation to enhance care quality with the necessity of financial sustainability is both a contemporary challenge and an opportunity for healthcare leaders. The results of the survey illuminate how C-suite executives understand that VBC can serve as an essential tool for navigating the complexities of modern healthcare.

Moving Forward

The healthcare landscape continues to reshape in response to various dynamics, including evolving payer models and macroeconomic factors. As leaders in the field examine their VBC strategies, the insights from the report will inform their decision-making processes moving forward.

Sage Growth Partners' study involved a robust sample of 101 healthcare providers representing various sectors, including independent hospitals and large integrated delivery networks. Such comprehensive data collection ensures that the findings reflect a wide array of views from healthcare executives navigating a transitional time.

In conclusion, the increasing commitment to VBC, despite ongoing challenges, signifies a pivotal turning point in healthcare investment strategies. The full report from Sage Growth Partners provides an in-depth exploration of these trends, spotlighting the path forward as healthcare systems aim for improved care outcomes and financial viability.