Ohio to Include Value-Based Care Language in 2013 Medicaid Contracts

The state of Ohio is kicking off its transition to value-based care through a partnership with an independent organization, Catalyst for Payment Reform, which will develop the new contract language, according to a Dayton Daily News report.

Ohio's Medicaid program is the first in the country to partner with San Francisco-based Catalyst for Payment Reform. The affiliation will not cost the state money. Catalyst uses the collective purchasing power of large employers like General Electric and Walmart to spur greater value in healthcare, according to the report.

Under the partnership, Ohio's Medicaid program contracts will include new language for 2013 that makes a larger portion of payments to managed care plans tied to how effectively patients are treated. Contract language is expected to be finalized next week.

State purchasing officials met in November to discuss ways to align the expectations of Medicaid, the Public Employee Retirement System, Administrative Services, Workers Compensation and Rehabilitation and Corrections. The Public Employees Retirement System is also partnering with Catalyst.

Related Articles on Payment Reform:

To Bundle or Not to Bundle?
7 Performance Measures Essential for ACOs, Other Payment Reforms
Value-Based Purchasing Requires Behavior-Based Hiring

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