The time is right for payers and employers to invest in value-based primary care solutions. The right implementation of an advanced primary care model allows for greater control of care delivery and lower total cost of care — while divesting from flawed fee-for-service methods.
But according to a recent article published by The Health Care Blog, investors need to become more discerning about which disruptors they put their faith in.
Which innovations will create true change?
Healthcare has seen a massive and sustained influx of investment — much of it in pursuit of bold and speculative promises. Over the past 45 quarters, major health plan stock prices have grown 4-6% per quarter. That’s around two times the growth rate of DJI and S&P.
Many investors are picking up on the trend towards transformation — but most healthcare firms seem able to attract funding through big ideas, bold promises, and little proof of performance. As The Health Care Blog writes,
“Few investors critically evaluate a venture’s broader design elements to gauge its chances for success. Many startups have great ideas and some even operationally execute those ideas well, but … a viable venture must also integrate with its clients’ workflows and connect with existing players in the larger health care management ecosystem.”
In summary: payers and employers should be looking for a primary care partner whose approach is innovative, yet proven.
So, what sets the bonafide innovators apart from the rest? There are two important criteria to consider: performance data and independent third-party validation.
Performance data is an essential indicator
Payers and employers should look for proof that the healthcare innovation being offered will pay off. Some of the most important indicators include:
Reduction in total healthcare costs
Reduction in inpatient and specialist claims
Patient engagement and satisfaction
Vera’s Advanced Primary Care model replaces the fee-for-service model with an at-risk solution designed for a market that increasingly considers value. Here is an overview of the results:
Third-party validation creates confidence
The effectiveness of a new approach to healthcare delivery should also be validated by an independent third party like the Validation Institute, which is dedicated to giving healthcare purchasers confidence in vendor partners and providers.
The Validation Institute has certified that Vera Whole Health’s Advanced Primary Care model delivers lower-than-expected costs while providing access to care centers, health coaching, longer patient visits, and coordination of care.
Read the full article at The Health Care Blog for more on why tying healthcare investment to performance leads to true innovation.