The Corner Series Redefining Healthcare: Transitioning from Fee-For-Service to Value-Based Models
In most professions, pay-for-performance is the norm. A certain level of performance is expected for an individual to get paid. So why has the fee-for-service model in healthcare persisted for so long? And what’s causing the shift towards value-based care?
On this episode of The Professor’s Corner, Larry Elisco, Partner at Wipfli LLP, discusses trends in value-based medicine with McGuireWoods’ Geoff Cockrell. The two acknowledge that the compensation structure has had a slow start despite its promising future.
“My view is that value-based care changes the landscape. It's pay-for-performance. It creates risk at the provider level where providers are in fact either going to be paid for performing well or not being paid if they don't perform well. And that's really what I see as a mega trend,” says Larry.
Some of the subspecialties that have been embracing value-based care are those that have commercial payers and can offer bundled payments, including orthopedics, cardiology, and OBGYN. Areas where a specialty is contained within itself are more likely to engage in value-based contracting.
Finally, Larry also shares insights into how buyers are approaching deals while incorporating value-based care and the importance of having strong data analytics and infrastructure in place.
Featured Guest
Name: Larry Elisco
What he does: Larry Elisco is a partner in Wipfli LLP’s healthcare practice and works closely with physician practices to provide accounting, audit, and valuation services. He has extensive experience serving the needs of physicians and their practices.
Organization: Wipfli LLP
Words of wisdom: “I think in every level of healthcare, that pay-for-performance component really has to be in place at some point.”
Connect: LinkedIn
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