Value-Based Contracting in Health Care

This session will examine the dynamics of a Value-Based Contract (VBC) by exploring how VBC’s are defined, designed, implemented, and scaled. 

This session will examine the dynamics of a health care Value-Based Contract (VBC), by exploring how VBC’s are defined, designed, implemented, and scaled. Value-Based Contracting, involving the payment for health care services, and expressed as a function of health outcomes and the cost of producing a health service, continues to  attract interest in the US and globally. In the US, projections estimate that VBC coverage will expand to a quarter of the population by 2027.  Contextual  factors such as the growth in Medicare Advantage, expansion of primary care services, and growth in Medicare Shared Savings Program are all enablers of VBC coverage.  These factors, however, do not detract from the reality that VBC models are operationally complex and nuanced, requiring significant investment in organizational capabilities and infrastructure, with returns usually accruing only in the medium-long term. In this session, we will unpack the motivations, challenges and opportunities facing health care executives, with designing, implementing, and evaluating value-based contracts.  Using examples, we will examine the external contextual and internal organizational enablers of VBC, explore the cost savings and quality gains offered by value-based contracts, and the portability of these contracts across differing operating environments.

This study group / discussion is open to all. Registration is not necessary.
M-RCBG welcomes individuals with disabilities to participate in its programs. To request accommodations or ask questions about access provided, please email: mrcbg@hks.harvard.edu