The partnership you need to successfully move forward in value-based healthcare.
The Comprehensive Care for Joint Replacement (CJR) program and the Bundled Payment for Care Improvement (BPCI) initiative from the Centers for Medicare and Medicaid Services (CMS) indicate a disparity between costs and outcomes. Costs are rising without a positive impact on outcomes. To address this, CMS is incentivizing hospitals to focus on value rather than volume, and to improve patient care while reducing overall episode cost.1
An entirely new approach is needed immediately to ensure sustainability and efficiency. The approach requires hospitals to think beyond what happens within their own walls, to the patient’s entire episode of care, inclusive of pre-op preparation, recovery, and overall wellness. But the process of changing to this new value model — which includes shifting departmental alignment, service line infrastructure, organizational goals, and technology requirements — is daunting.
Value-based healthcare programs are here from CMS today. Private insurers and employers are likely to follow. For providers who seek to continue to provide joint replacement care, adapting to this change is imperative.1
Reconciliation payments will change with time. Those who invest in organizational change today have an opportunity to become centers of excellence—positioning their businesses for growth and success.
Hospitals that implement change sooner are more likely to benefit later on:
For hospitals that want to proactively navigate the new healthcare landscape, know that a transformational path has already been forged.
Medtronic Orthopedic Solutions is a turnkey, value-based healthcare change management approach that centers on a dynamic collaboration between Medtronic and the hospitals with which we partner. Using our tested Radius360™ methodology—devised by expert physicians and veteran hospital administrators who have had success in their own institutions—we will help to deliver the right approach to manage episodic costs and align short-term and long-term physician and provider incentives.
Through long-term partnership, patient outcomes are maintained or improved while costs are reduced across the entire episode of care.
Creating the necessary institutional change requires a belief in the promise of value-based healthcare. The belief that care can be improved while eliminating unnecessary utilization and cost is a goal of our orthopedic business, and one that will guide our partnership from day one.
When it comes to identifying areas primed for meaningful cost reduction, Medtronic Orthopedic Solutions’ focus spans the entire episode of care with customized solutions
Physicians will drive the behavioral and process change necessary for care redesign and cost reduction across the care continuum. To lead this change, they need to align their financial goals.
Our commitment to creating true value in healthcare delivery means that we do not and should not get paid unless the hospital is successful in reducing its total episode costs while improving patient quality and outcomes. Based on the CJR model, our success fee will be aligned with the success of the CJR program.
By aligning short-term needs with long-term goals, Medtronic aims to lead the way in defining success in value-based healthcare and is the right partner for your organization.
Comprehensive Care for Joint Replacement Model. Centers for Medicare & Medicaid Services. https://innovation.cms.gov/initiatives/CJR. Updated October 5, 2016. Accessed October 13, 2016.
Comprehensive Care for Joint Replacement Model—Provider and Technical Fact Sheet. Centers for Medicare & Medicaid Services. https://innovation.cms.gov/files/fact-sheet/cjr-providerfs-finalrule.pdf. Accessed October 13, 2016.
The Milliman Report, October 2016.