Value-based Payments to Double By 2019

Healthcare is moving rapidly to incorporate measures of value into payment models, with more than two-thirds of payments expected to be based on value measurement in five years, up from just one third today.


Healthcare is moving rapidly to incorporate measures of value into payment models, with more than two-thirds of payments expected to be based on value measurement in five years, up from just one third today.

That’s just one of the findings from The 2014 State of Value-Based Reimbursement, an independent research study of 464 payers and providers conducted by ORC International and released at the AHIP Institute 2014 Conference in Seattle. The report was sponsored by McKesson Health.

McKesson’s Medical Director, David Nace, M.D., says the results point to a sea change in healthcare reimbursements, a change in attitude, and a call for action. “For stakeholders, it really is a matter of taking action now or risk being left behind, as dollars increasingly flow towards value-based models,” Nace says.

But the study also reveals that healthcare transformation is painstaking work. Existing systems are being pushed to the breaking point, and administration of these new models requires next-generation healthcare IT to make them automated, scalable, and cost-efficient.

The study reveals these and other challenges, as well as a wealth of data that can have a significant impact on strategic planning for payers and providers. In addition, Nace advises stakeholders on the seven steps payers, providers, and clinicians can take today to start aligning towards value-based reimbursement models.

The study, available here, included 114 payers and 250 hospitals of various sizes.

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