“Beyond the price of products, the supply chain can provide data on variation in both the supply choices made by physicians and the impacts on quality and financial metrics, such as complication rates, procedural time and length of stay,” Conway said. “Physicians, in turn, can make decisions that improve quality, which can result in lower total costs of care by reducing hospital-acquired conditions and unplanned readmissions.”
The fact that the survey findings clearly suggest COVID-19 will have no long-term effect on organizations’ appetite for risk is telling, if only to suggest that organizations with ongoing plans to build on their plans to pursue risk-based contracts seem solidly committed to this course.
This conclusion is supported by the survey’s finding that the substantial majority of respondents anticipate increased coordination and collaboration among their APM partners toward success with risk contracts, which would not likely occur without deliberate actions by the respondents’ organizations toward promoting such an outcome.
“Developing the capability to successfully manage risk under alternative payment systems, is, in my view, the only way to address the rising healthcare costs,” Zehm said. “My perspective is that some commercial insurers are reverting to fighting with providers over fee-for-service rates. This will never address the underlying cause of the increasing cost of healthcare, which is the overutilization of expensive services. The overutilization is occurring because there is a lack of integration between sick care, wellness, social determinants of health and disease management, not because of bad actors. We either work together, or our U.S. employers will find another way, and we will all pay the price.”
a Supply chain partners here include both internal supply chain leaders, and external partners, such as suppliers, manufacturers and group purchasing organ. izations.
b See, for example, Long, A., and Senn, G., “Hospitals need engaged physicians to manage supply preferences,” HFMA Financial Sustainability Report, Ap. ril 2020.
c Falk, S., Cherf, J., Schulz ,J., Huo, A., "Cost and outcomes in value-based care," Physician Leadership Journal, Jan. 13, 2019.