Value-Based Models Require Emphasis on Population Health Management

As healthcare payments are increasingly linked to value-based models, population health management is becoming more important as a means to reduce financial risks. A report recently released by the Academy Huron Institute provides some valuable background on the evolving trends within population health management. Three key factors noted in the report include the following:

Increasing prevalence of risk-based programs—the report provides an analysis of how healthcare providers are taking on greater risks through commercial incentives, partnering with health plans, and participating in accountable care organizations (ACOs).

Greater emphasis on population health management—health systems are planning to allocate a “significantly greater level of investment” in population health management, with ROIs anticipated within three years to four years.

The need to utilize new infrastructure—the infrastructure needed to improve population health management is mainly tied to data analytics and related information technology systems such as electronic health records. The key to maximizing ROI here involves the ability to collect large amounts of this data and then transform it into actionable intelligence through the use of data analytics.

The report notes that 2015 may be a pivotal year marked by a “dramatic shift toward the use of risk-based agreements and execution of population health management.” In 2014, approximately 15% the revenue generated by the nation’s leading health systems was earned through value-based or at-risk alternative payment models, but that percentage is expected to increase to 21% this year and then grow substantially throughout the remainder of the decade.

You can learn more by downloading the 10-page report at: http://www.huronconsultinggroup.com/Insights/Report/Healthcare/Population-Health-Collaboratives-2015-Agenda-Based-on-Evolving-Trends