Value-based care (VBC), a CMS initiative, drives hospitals to deliver high-quality, affordable care by focusing on patient outcomes rather than the volume of services provided. This begs the question, “how do hospitals effectively introduce the VBC model to their programs and how does this impact the hospital financially?”
Early inpatient rehab intervention: A key to VBC
Research has shown that when patients see a rehabilitation therapist first when experiencing musculoskeletal-related pain or injury, both the patient and provider see a drastic decrease in spending. This includes spending reductions of key services like imaging (by 30%), surgeries (68%) and emergency department (ED) visits for non-emergency musculoskeletal problems (nearly 80%).
The American Physical Therapy Association published a report detailing the impact rehabilitation therapy can have in reducing healthcare costs and providing significant value to a patient’s recovery.
Specifically, the report found that over entire care episodes, the use of rehabilitation therapy can save patients and payers thousands of dollars while providing them long-term management and/or relief, compared to treatment alternatives. Another study highlights how the PT setting allows for routine assessment of physical function during a patient’s hospitalization, which in turn improves risk stratification and supports successful care transitions, particularly in older adults.
Effective PT can also prevent unnecessary future health expenditures, as the right program will address all patient needs in one care episode, in turn reducing length of stay and readmission risk – therefore promoting VBC outcomes.
Ineffective healthcare spending: What is it and how is it impacting hospitals?
Healthcare spending in the U.S. is burdened by significant waste, estimating to be around $935 billion annually. A major portion of this waste stems from inefficient spending. Spending efficiency can be improved through practices such as:
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- Care Delivery Optimization: Enhancing timing and appropriateness of care and expanding preventive services.
- Reducing Low-Value Care: Minimizing unnecessary interventions to improve patient outcomes and resource allocation.
- Improving Care Coordination: Streamlining electronic health records (EHRs) and provider communication.
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These system-wide challenges are driving the adoption of VBC models, including rehab therapy. Strategic partnerships that integrate data and technology can support hospitals in navigating this transition and enhancing financial performance.
Technology’s role in VBC
Technological advancements and data analytics are major drivers in the VBC movement. Utilizing outcome management and patient engagement tools supplied by a qualified partner can allow rehabilitation therapists to effectively monitor daily patient progress and compare it against patients with similar conditions.
Key “value” additions following technology integration include:
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- Performance goal setting: Through patient engagement apps, patients and therapists can set goals to help ensure milestones are achieved and recovery goals are met, all while remaining connected with family and friends throughout the process.
- Staffing and retention: Hospitals can more effectively hire, educate and train team members, helping to streamline the onboarding process and reduce turnover.
- Streamlined care coordination: This is critical for patients who interact with multiple providers and specialists. Enhanced communication and integration among providers and their EHR systems results in greater efficiency and streamlined workflows.
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Driving Value-Based Care with Strong Rehabilitation Partnerships
There is not a one-size-fits-all approach to VBC or to partnership.
It is important to find a partner that can tailor their approach to address the unique needs of the community while seamlessly integrating VBC across service lines. Doing so will help ensure clinical and operational gaps are closed, and patient needs are met, all without expending unnecessary resources.
Contact us to learn how partnership with Lifepoint Rehabilitation can help your hospital improve patient care and outcomes.
References:
- https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7185050/
- https://www.mckinsey.com/industries/healthcare/our-insights/investing-in-the-new-era-of-value-based-care
- https://ijspt.scholasticahq.com/article/88336-physical-therapy-and-value-based-care-vbc-the-future-is-now
- https://www.valueofpt.com/
- https://www.pgpf.org/blog/2023/04/almost-25-percent-of-healthcare-spending-is-considered-wasteful-heres-why
- https://www.cdc.gov/nchs/products/databriefs/db439.htm
- https://shmpublications.onlinelibrary.wiley.com/doi/10.1002/jhm.13538
