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8 systems that have successfully moved into value-based care


Dan Beckham, writing in Hospitals &  Health Networks, looks at eight systems that have followed consistent strategies to create value-based systems.

The systems are:

  1. Advocate Health Care:  Mr. Beckham cites how it turned its physician-hospital organizations “into a super-PHO, becoming the national benchmark for clinically integrated networks.”
  2. Banner Health: “Banner centralized leadership and governance, and standardized care and management processes.”
  3. Baylor Scott & White Health: “Scott & White brought its highly integrated multi-specialty group practice model and its health plan to the merger, while Baylor brought a robust network of hospitals, surgery centers and entrepreneurial partnerships.”
  4. Cleveland Clinic: ”A pioneer in transparency related to demonstrated value and bundled contracts, Cleveland Clinic has combined one of America’s premier multi-specialty group practices with community hospitals and independent physicians to produce a powerful economic engine.”
  5. Geisinger Health System: “It is internationally recognized for innovating at the interface between health insurance, inpatient care, outpatient care and physician practice. Few organizations have positioned themselves as purposefully as Geisinger for the transition from volume- to value-based payment.”
  6. Intermountain Healthcare: “The late W. Edwards Deming, a quality icon, was a central inspiration for Intermountain’s relentless battle to drive out variation. While many health systems treated total quality management and its variants as a passing fad, Intermountain dug in and made it a way of life. The presence of Intermountain contributes greatly to Utah’s position as one of America’s healthiest places to live.”
  7. Mayo Clinic: “Its strength flows, to a great extent, from the team-based multispecialty group practice model that has been central to its operations since its founding, along with its unwavering focus on putting patient interests first. The ‘Mayo way’ is well-engineered and nonnegotiable. No organization has deeper, better-connected data.”
  8. Sentara Healthcare: “When other systems experimented with ownership of health plans, then exited in the face of losses, Sentara persevered. When physician employment became too big a financial burden for others, Sentara doubled down. Because it persisted when others folded, it was able to put more than two decades of experience into its intellectual bank vault. It learned to meld a managed care enterprise, a hospital enterprise,  and a physician enterprise into a formidable integrated delivery system.”
    To read all of Mr. Beckham’s piece, please hit this link.

Video: Maximizing pay for performance


In this video, Marisa Valdes, director of strategy and operations at Baylor Scott & White Health, in Dallas, talks about how to maximize pay for performance.

To see the video, please hit this link.

3 big things in healthcare valuation


Scott Becker, a partner at McGuireWoods and publisher of Becker’s Healthcare, asked speakers at a confab to discuss the most interesting issues in healthcare valuation they’re seeing. Here are some of the issues the speakers identified.

1. Emergence of quality provisions. In Becker’s words: “Physicians are increasingly being compensated for providing high-quality care, and quality provisions have begun working their way into physician contracts. …. good quantitative information available to show what physicians earn for producing quality outcomes, said Jim Carr, partner at HealthCare Appraisers.”

2. Rise in unusual partnerships. “On the transaction side, what has been interesting is a trend for really unlikely parties joint venturing,” said Greg Koonsman, senior managing director and founder of VMG Health.

He cited  the partnership between nonprofit Baylor Scott & White Health and for-profit Tenet Healthcare. “In the Baylor-Tenet deal, that transaction had to be at fair market value or at a range of fair market value because Baylor, being tax exempt, has to approach the valuation of the JV appropriately to protect its tax exempt status,” said Mr. Koonsman.

3. Use of benchmarks.  In Becker’s words, “Assuming it is not efficient to do a valuation for every physician that is hired, hospital compliance officers increasingly want information they can benchmark off of. Although this may work for many physician compensation arrangements, it is not the best method to use in all cases, according to Jonathan Helm, managing director in the professional service agreements division at VMG Health. ‘If someone is an outlier you would probably want a separate valuation,’ he said.

The uses of a Texas hospital’s innovation center


Here’s a look at  the innovation center of the The Heart Hospital Baylor Plano (Texas), part of Dallas-based Baylor Scott & White Health.  More and more hospitals are opening up such centers.

The hospital opened its innovation center, a 10,000-square-foot training facility on the fifth floor of The Heart Hospital Baylor Plano, in 2011.

Becker’s Hospital Review reports that the center “includes an advanced training facility, as well as a Bioskills Lab, and offers various services such as medical education, staff development, student educational experiences, healthcare preceptorships and hands-on training events for medical professionals from all over the world and nation.”

Becker’s says; “Mark Valentine, president of the hospital, says the organization opened the center because it realized the opportunity existed to expand relationships in the cardiovascular healthcare industry as well as create new relationships in other areas of healthcare. For instance, the center now offers some cadaver training and courses for orthopedic industry training.

“Through the center, the hospital has also formed international relationships, where industries and architecture groups worldwide come to tour the hospital and see how the hospital cares for its guests.”

“Mr. Valentine says the hospital also created the innovation center to train nursing personnel. Nurse training and focused learning opportunities in the Bioskills Lab can occur simultaneously without interference to ensure a productive learning experience and train nursing personnel.”

Texas venture is aimed at improving population health


Baylor Scott & White Health and Tenet Healthcare, both based in Dallas, have a joint venture to own five Texas hospitals. The parties say the mission of the venture is to improve population health.

The  joint venture will own:

  • Centennial Medical Center (Frisco).
  • Doctors Hospital at White Rock Lake (Dallas).
  • Lake Pointe Medical Center (Rowlett).
  • Texas Regional Medical Center at Sunnyvale (Texas).
  • Baylor Scott & White Medical Center – Garland (Texas).

Becker’s Hospital Review reported that all the hospitals “will have Baylor Scott & White Health branding as early as this spring. Additionally, physicians, advanced practice providers and other employees of Tenet’s North Texas physician group will transition to Baylor Scott & White Health’s physician group HealthTexas Provider Network.”

Tenet Chairman and CEO Trevor Fetter said: “We have already made meaningful progress in advancing population health through our physicians’ participation in the Baylor Scott & White Quality Alliance, a leading local Accountable Care Organization, and the completion of this joint venture is an important next step in coordinating top-quality, value-based care in North Texas.”

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