Transitioning to Value-Based Care

Financial Implications for Providers and Policymakers

Successful value-based care initiatives have proven they can deliver better care for patients at lower costs and can be attractive to individual physicians, clinicians, and delivery systems. Policymakers are working to encourage provider participation in these initiatives, but the transition to value-based care involves a significant upfront investment and with no guarantee of success.

John Barkett explores three main types of transition costs—care delivery costs, start-up administrative costs, and financial costs—and how policy decisions can help or hinder the shift to value-based care.