Value based care: The employer advantage

In today's fast-paced business environment, employers are constantly seeking innovative ways to stay ahead of the curve. For employers, the stakes are high: with payroll and health care benefits accounting for so much of their budget, finding a way to manage expenses without sacrificing productivity or employee health and well-being is a top priority. Enter value-based care (VBC), a transformative health care delivery model that is helping shift the focus of care from volume to value — and gaining traction as a win-win for employers and employees alike.

Value-based care rewards providers for delivering high-quality, cost-effective care that can improve patient health outcomes. Unlike the unsustainable, traditional fee-for-service model, where doctors are paid based on the number of services performed, value-based care rewards outcomes. Traditional fee-for service care often leads to rising health care costs and inconsistent quality of care, whereas value-based care prioritizes preventive care, coordinates services, and use evidence-based treatments to achieve better health outcomes.

A study published by McKinsey & Company found that value-based care models, such as accountable care organizations (ACOs), can reduce health care spending by up to 5% (McKinsey & Company 2020).¹ This can have a direct impact on an employer's bottom line, freeing up resources for other business priorities.

Patient-centered care leads to lower health care costs

By focusing on the quality, affordability, and accessibility of population needs, value-based care leverages data analytics and insights to help health insurers partner with the right providers and curated networks that work to benefit the local population where employees live and work. That translates to better coordinated care and an ecosystem that is centered on the patient.

Dr. Matha Arun, Sr. Medical Director of Provider Engagement for Florida Blue says, “This patient-centered approach makes the quality of care consistent, which leads to better health outcomes and lower out-of-pocket costs.” This in turn helps employees as patients avoid unnecessary visits to the emergency room, hospital, or specialist services which are expensive. Value-based care goes beyond addressing physical illness; it’s part of a holistic approach to improving the mental, social, and overall well-being of patients.

Employer benefits of value-based care

Employers engaging in value-based care solutions find that working closely with their health insurance carrier is critical to managing their bottom line. A strong example of value-based care is how Florida Blue collaborates with providers focused on high-quality care and to drive and sustain improvements in six key areas: quality and coordinated care, population health, care experience, cost reduction, provider experience, and health equity. By working together, Florida Blue and employer groups can develop strategies to slow the rise of health care costs, enable healthier lives for employees, and create a more sustainable health care system for the future.

“That's why Florida Blue is committed to expanding our value-based programs, which are designed to address affordability and help reduce the continued increase in health care costs for our members and employer groups,” Dr. Arun emphasizes, reinforcing how transformative this health care delivery system can be in creating a better future for employers and members.

The bottom line

Value-based care is a game-changer for employer-sponsored health care, offering a unique opportunity to create impactful transformation in the health care landscape. By embracing a value-based care model, employers can unlock a variety of benefits, including significant cost savings, improved workforce health and productivity through patient-centered care and improved outcomes, enhanced employee engagement, and ultimately driving long-term business success.

Don't miss out on the opportunity to revolutionize your own health care strategy. Learn more about value-based care and how it can benefit your organization and employees. Contact your broker today to discover the employer advantage of value-based care.

References

¹McKinsey & Company. "The Math of ACOs." McKinsey & Company. (2020) https://www.mckinsey.com. Accessed 2024