Healthcare Reimbursement Models to Change, Affecting Valuation

Reimbursements from insurers, made to healthcare facilities for the care they administer, are an essential part of the valuation of hospitals, clinics, outpatient care centers and other facilities. As if that exchange wasn’t complicated enough, it’s about to go through another transition that very well may impact the valuation of all healthcare institutions.

According to a new white paper released by McKesson, the existing fee-for-service model will be phased out by a new “value-based” payment model within five years. The survey, commissioned by McKesson and conducted by ORC International, estimates that by 2020, nearly 70 percent of reimbursements will be based on complex value measurements. Not surprisingly, the study, 2014 State of Value-Based Reimbursement, found that while 60 percent of payers believed the transition would be good for their organizations, only 35 percent of the care providers felt the same for their institutions. To read the full report, click on the link below.