Healthcare Managers Expect Value-Based Contracts to Negatively Affect Profits

A new study from KMPG, an audit, tax and advisory services firm, has found 49 percent of healthcare managers from hospitals, health systems and large physician groups expect value-based contracts to negatively affect profits.

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The study was based on survey results of 240 representatives from hospitals, physician practices, health plans and pharmaceutical companies.

The study found 33 percent of all the healthcare managers surveyed believe value-based contracts will have a negative effect on operating results, with more than 12 percent expecting operating income to fall by 10 percent or more as a result of value-based agreements.

The study also addressed quality of care. The study found 31 percent of healthcare managers expect clinical IT to have the biggest impact on quality of care and patient outcomes, while 15 percent believe financial performance will have the biggest impact.

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