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Dec 2016 - Perspective - Doc # US42187116

Perspective: Changes in Administration Will Not Derail Value-Based Health

By: Cynthia BurghardResearch Director, Value-based Healthcare IT Transformation Strategies

Abstract

This IDC Health Insights Perspective discusses the impact of the 2016 election results on value-based health. With 2016 election results still being evaluated and while cabinet members are being proposed, IDC Health Insights does not believe there will be a negative impact on value-based care, particularly as it relates to IT requirements and plans for technology procurement. We believe this for three reasons:

  • The president-elect's commitment to dismantle the Accountable Care Act (ACA) is focused primarily on the provisions for the uninsured. It is very unlikely that these provisions will be repealed without a replacement strategy. That strategy is likely to have IT implications but not directly related to value-based care. The balance of the provisions of the Accountable Care Act focus on issues agreed to by both parties such as protections for consumers, a focus on quality improvement, and cost management.
  • Value-based care is as much, if not more, of a strategy for the commercial insurance industry as for government. Employers and consumers will not tolerate a reversal in the progress that has been made to date to improve quality and manage costs. IDC Health Insights' survey results indicate growth in commercially sponsored value-based reimbursement models. The survey respondents indicated increased levels of IT spend on technology and staffing for value-based programs.
  • Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) will have significant impact on payment to physicians that will be based on quality of care, not on volume of care. Some in the industry argue MACRA will make it more difficult to sustain revenue in order to stay in business. In order for physicians to be successful under MACRA, they will need to manage their patients to quality measures. This will require investments in analytics and other population health technologies.

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