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Physician Practices Trail Hospitals in Value-Based Care Readiness

Physician Practices Trail Hospitals in Value-Based Care Readiness

February 9, 2021Emily SokolNo CommentsRevCycle IntelligenceCommercial Payer Contracting

Small, non-affiliated physician practices fall behind hospitals and health systems when it comes to value-based contracting, found the Value-Based Care Assessment: 2020, the latest report from Insights by Xtelligent Healthcare Media.

Hospitals and health systems have a greater market share, giving them the bargaining power to negotiate rates and innovative contracts with payers. These large provider organizations also have bigger patient populations that are more attractive to payer partners; these bigger patient populations lets payers impact the greatest number of members.

“We’re a medium-sized agency and a nonprofit. So we don’t have payers wanting to be partners with us because we don’t have enough patients to make it worth their while,” said a director of palliative care at a hospice facility during qualitative follow-up. “We don’t have a lot of options in terms of partnerships.”

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