Providers Unprepared For Payment Model Transition

The 2016 Cost Accounting Survey unveiled by HIMSS in Las Vegas early March revealed that although approximately half the respondents surveyed have adopted an alternative payment model, the overwhelming majority of providers (97 percent) feel unprepared for the transition from a fee-for-service model to a more patient-centric pay-for-value model. The survey also found that providers serving an urban market were more enthusiastic participants in the new payment model compared to those exclusively serving rural communities.

According to Pam Jodock, Senior Director of Health Business Solutions at HIMSS, in order to fully realise the cost benefit of the new payment model, there will be a pressing need to develop supporting infrastructure and business processes.

The survey has helped identify the dominant needs that providers perceive as essential for a smooth transition. A standardized method of information exchange (both clinical and financial) between all entities in the healthcare system is critical. The 102 executives that were surveyed felt there is a compelling need for consistency in the definitions of the types of diseases. Other areas that need attention are standardized cost accounting methodologies, tools to track the quality of care, consistent means for price determination and sharing, and improved communication among providers with better management of information exchange.