Opportunities on the road to value-based payment for children with chronic respiratory disease
Katharine A Kevill1, Alia Bazzy-Asaad2, Susmita Pati1
1Department of Pediatrics, Stony Brook University School of Medicine, Stony Brook, New York.
Insights
The US healthcare system is shifting from fee-for-service to value-based payment models, impacting children with chronic respiratory disease. This transition requires careful planning to ensure improved, not hindered, access to quality care.
Area of Science:
- Health Services Research
- Pediatric Healthcare
- Healthcare Economics
Background:
- The US healthcare system is transitioning from fee-for-service (FFS) to value-based payment (VBP) models, accelerated by the Affordable Care Act.
- VBP models are projected to surpass FFS by 2020, significantly altering healthcare delivery.
- The current FFS model has created a healthcare infrastructure misaligned with the needs of children with chronic respiratory disease.
Purpose of the Study:
- To analyze the opportunities and risks of VBP models for children with chronic respiratory disease.
- To illustrate current and evolving payment models through case studies.
- To propose a novel framework for evaluating VBP models for this vulnerable population.
Main Methods:
- Review of current and evolving healthcare payment models.
- Analysis of limitations within existing payment structures.
- Development of a conceptual framework for VBP evaluation using fictional case studies.
Main Results:
- The shift to VBP presents both opportunities for better alignment with patient needs and risks of further misalignment if not carefully implemented.
- Current VBP models may not adequately address the complex, heterogeneous care requirements of children with chronic respiratory disease.
- Stakeholder input is crucial to prevent negative impacts on access to high-quality care.
Conclusions:
- Value-based payment models offer a chance to redesign healthcare delivery for children with chronic respiratory disease.
- A thoughtful, stakeholder-informed approach is necessary to ensure VBP models enhance, rather than compromise, care quality and access.
- A novel evaluation framework is proposed to guide the development and implementation of effective VBP models for pediatric chronic respiratory conditions.
Abstract:
The transition from a fee-for-service payment system to value-based payment system gained momentum in the US in 2010 with the passage of the Affordable Care Act and continues to progress rapidly. Market research estimates that value-based payment models will surpass fee-for-service by 2020. This change offers both great opportunity and great risk to the medical care of the heterogeneous populations of children with chronic respiratory disease. The fee-for-service model has driven the emergence of a healthcare delivery infrastructure markedly misaligned with the medical needs of children with chronic respiratory disease. A change to value-based payment models offers the opportunity to create systems better aligned with the complex and varied care needs of these children. However, rapid change without input from the relevant stakeholders could yield an infrastructure even more misaligned with the needs of children with chronic respiratory disease than the current one and threaten access to high quality medical care for these populations. Through the lens offered by three fictional case studies, this review: (1) illustrates current and evolving payment models; (2) describes limitations of these payment models; and (3) suggests a novel way to envision and evaluate value-based payment models for children with chronic respiratory disease.
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