• Succeeding in a Value-Based Payment World

    May 25, 2012

    Centura Health, a 13-hospital system in Colorado, has enjoyed success with pay-for-performance contracts for nearly a decade. Bradley Olson, former director of payer relations and contracting, shares what works-and what does not-in accepting risk based on performance.

    • Use simple measurements that incorporate both the payer's and the health system's goals
    • Set goals that are achievable through operational changes and hard work
    • Do not agree to goals that will be unattainable
    • Ensure that the relevant clinical teams know the baseline measurement and how improvement affects the health system financially
    • Communicate results to those clinical teams as often as possible
    • Reward clinical and quality teams for achieving pay-for-performance goals
    • Have appropriate resources in place to implement a pay-for-performance contract before the contract is signed
    • Ensure the right process is in place to succeed on each goal
    • Monitor progress often
    • Do not get discouraged if you don't achieve the goals every year at 100 percent
    • Set reasonable targets so you can be confident the benefit of pursuing the goal outweighs the resource costs
    • Remember the true goal is better quality care for patients

    Return to related Leadership article: The Push to Value-Oriented Payment