Wednesday, June 19, 2019

How Primary Care Consolidation Helps Drive Value-Based Care

Paul Martino Co-Founder and Chief Strategy Officer, VillageMD Published on June 18, 2019
There is a distinct value proposition today for independent primary care doctors to become part of larger practices. With the scale of a larger organization, it is far easier for primary care physicians to enter into value-based contracts with payors, allowing them to share in the value they create.
 Small, independent practices lack the size and scale needed to negotiate effective value-based contracts with payors. By joining forces, primary care physicians can negotiate contracts that allow them to benefit from the value created by improvements in clinical quality and clinical efficiency. These value-based contracts are a main reason behind primary care consolidation.
Value-based healthcare continues to gain momentum as an economic model that focuses on patient outcomes, aligning providers to deliver high-quality, lower-cost care. Value-based care differs from the traditional fee-for-service, a model that compensates for quantity of healthcare and is not necessarily aligned with quality of healthcare. Only a value-based model compensates physicians for appropriate healthcare, delivering measurable improvements in both clinical quality and the total cost of care. 
Established practices with a reputation for high quality are at the center of physician consolidation. An example is Envision Medical Group, one of our providers in Michigan, which over the past few years has evolved from multiple small independent practices to an integrated, physician-driven healthcare enterprise.   
 As part of a larger group, primary care practices gain economies in operating efficiencies. Large groups can tackle technology implementation, such as changing electronic medical records (EMR) platforms, far more easily than a small practice. Access to management expertise, specialized consultant talent, and the ability to withstand interruptions in cash flow allow large groups to invest in the changes needed to meet a growing and evolving healthcare environment. 
Scale and technological competency are critical in managing large amounts of clinical data. It takes a significant investment in talent and technology to gain the capabilities to take in data from multiple and varied sources, normalize it, and produce actionable results.  Without data across the continuum of care, primary care physicians cannot identify clinical patterns, apply risk stratification to patient populations, and provide proactive clinical interventions.  Uncovering emergency department (ED) utilization trends, engaging in discharge plans for hospitalized patients, and implementing aggressive transition care management can all impact populations of patients.
Timely data in the hands of the right providers can inform clinical conversations. Team huddles, evaluations of clinical strengths and weaknesses and conversations with specialists and ancillary service providers are more productive and better informed by good data. In our Houston practice, the transition team meets regularly with local hospitalists to share best practices and identify opportunities for improvement, all informed by accurate and timely data.
Data drives the identification of the most efficient and highest-quality specialty and ancillary networks. These “narrow networks” are critical to delivering value based-results. Clive Fields, co-founder and Chief Medical Officer of VillageMD, has observed, “Specialists and ancillaries should earn our business the old-fashioned way, with quality, access and communication.”
As the economic model of healthcare continues to evolve, even greater emphasis will be placed on clinical outcomes. No one is better suited to impact these results than primary care physicians. Through value-based contracts, primary care physicians can drive improved outcomes for their patients, the communities they work in, and their own medical practices.
Paul Marino is co-founder and Chief Strategy Officer at VillageMD. He recently spoke on a panel at Becker's 17th Annual Future of Spine + the Spine, Orthopedic and Pain Management-Driven ASC Conference. 
https://www.linkedin.com/pulse/how-primary-care-consolidation-helps-drive-paul-martino/

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