Reshaping Healthcare:
Throughout the course, change has been one of the central topics for healthcare management. The current healthcare environment is shifting from a fee-for-service model to a value-based healthcare delivery model. While there have been some positive changes, as the healthcare industry moves to value-based healthcare, there is still a significant amount of work to be done. One way to view value-based healthcare is a model that rewards providers for improving patients' outcomes while enhancing the health of populations and controlling costs. There are different types of healthcare models, demonstrations, or CMS initiatives, such as an Accountable Care Organization (ACO), the Bundled Payment for Care Improvement (BPCI) Model 2 Initiative, or the Comprehensive Care for Joint Replacement (CJR) model. These different types of value-based healthcare models have demonstrated to be positive in many ways with one of the primary benefits being cost-control. Considering the element of cost-control, this aspect of value-based healthcare may require healthcare leaders to adjust their operational and financial metrics. For example, if a hospital is participating in one of these initiatives, then the leaders may have to adjust numerous budgets such as census, financials, and staffing. Therefore, the healthcare leaders of a hospital must be adequately prepared for such adjustments, and make appropriate changes, to ensure successful delivery of the cost-control element for a value-based healthcare initiative.
Practical Application: You are one of the finance managers for a healthcare system involved in several different value-based healthcare initiatives. You are trying to work through the upcoming budget and need to consider the different impacts of value-based healthcare for the organization. As you are working on the upcoming budget, you consider numerous elements such as revenue, spending, staffing, and capital expenses. One of your responsibilities is to work with other department finance leaders on the initial budget, where you must present your ideas on budgeting and financial considerations for the next fiscal year.
Discussion Post: In a minimum of 150 words, discuss the following questions:
What are some of the primary budgeting and financial aspects to consider for the initial budgeting plan? Offer at least one example.
How would one of these value-based initiatives influence revenue in your planning process? Is this a financial aspect that you will consider, yes or no? Why?