Avalere Health
An Inovalon Company
Insights

May 13, 2015

Focus on Value: Performance Contracting

Given the rapid evolution of the healthcare marketplace and increasing focus on delivery of value-based care, healthcare stakeholders across the spectrum are focused on appropriately managing risk.

This is done by utilizing resources wisely to deliver high quality care and achieve target clinical outcomes for patients. Converging factors such as value-based payment, quality measurement and reporting, expanding health insurance coverage, and increasing cost pressures and new specialty drugs create the need for developing better payment and delivery models that test how value-based healthcare can be best delivered across healthcare stakeholders. 

Among these innovative models are performance contracting arrangements – contracts in which manufacturers and payers measure outcomes and sometimes share risk on the value of care delivered to patients.  These arrangements can be based on a variety of metrics associated with care delivery, including clinical outcomes or product utilization.

Overall, these agreements reside on the premise that the arrangement can deliver significant value for stakeholders, including payers, providers, patients, and manufacturers, by tying the contract structure to the value delivered through the arrangement. By increasing the risk shared between parties, such arrangements – when appropriately designed and implemented – have potential for stakeholders to participate in high-value care delivery and achieve the best patient outcomes based on aligned incentives. 

To learn more about the new dynamics of performance contracting, please register for an informative three part webinar series presented by experts from Avalere Health.

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