5 things to know about the state of hospital value-based payments, per execs

Value-based care initiatives account for only a quarter of hospitals' revenue, according to a recent survey of healthcare executives.

For the survey, healthcare data analytics and policy firm DataGen commissioned Sage Growth Partners to ask 102 healthcare executives about how they view the current state of value-based care.

Five takeaways from the survey: 

1. Executives of hospitals with at least 550 beds said, on average, 37.9 percent of their revenue is tied to value-based payments. 

2. ACOs are the most popular value-based payment model, with 62 percent of executives saying their organization participates in one. In comparison: 

  • 51 percent of participants said they use Medicare episode-specific bundled payments
  • 35 percent said they use patient-centered medical homes
  • 29 percent said they use capitation 
  • 25 percent said they use commercial bundled payment agreements, and 
  • 11 percent said they use all-payer and other payer options 

3. While use of value-based payments isn't widespread, 62 percent of respondents said they plan to enter into or grow their value-based care initiatives in the next two years. In addition, half of the respondents said value-based care will become the primary revenue model of U.S. healthcare in the next five years.

4. Value-based payment models have improved quality significantly or moderately, 69 percent of respondents said. Twenty-nine percent said the models have only slightly improved quality.

5. Budget is the No. 1 reason organizations won't invest in value-based care initiatives, according to the survey.

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