VALUE BASED PAYMENTS
By Kathrine Panzarella, CPA, Director of Finance
Through the implementation of the Value Based Payments (VBP) process, providers and Performing Provider Systems (PPSs) in successful Delivery System Reform Incentive Payment (DSRIP) programs will see a significant shift in reimbursement dollars.
DSRIP funds will allow them to compensate for lost revenues while investing in new infrastructure. Similarly, DSRIP funds will be used to pay for care activities that are currently not funded or underfunded, especially important as innovative, outpatient and community-focused care models are being introduced.
As quality outcomes improve, and avoidable admissions and visits are reduced, the current fee-for-service model will be increasingly ill-fitted to sustain the new delivery models. After five years, when the DSRIP funding stops, gains realized will be impossible to maintain unless significant steps are made to align payment mechanisms with these new care models. Importantly, without payment reform, improved outcomes and efficiency will lead to reduced reimbursements, and a downward rebasing of Managed Care Organization (MCO) premiums, reducing Medicaid dollars and weakening rather than improving the viability of the safety net.
Education is an integral part of preparing for the transition to VBP. Millennium Collaborative Care, PPS is committed to assisting its partners in this learning process. Currently, there are a number of education opportunities that are in existence or that are planned to be provided to our partners.
Please click here for our first offering of “VBP 101”, as well as links to the comprehensive overview of VBP presented by the State Department of Health in the VBP Bootcamps held this summer/fall. More educational offerings, through the PPS or external sources, will be also be provided.
Feedback on course requests is always welcome from our partners. If there is a component of VBP that you or your organization would like further detail on, please email us at Value-Based-Payment@millenniumcc.org.