Forecasting the Impact of Value-Based Payment on Health Center Financial Performance

Health reform and the evolution of value-based payment (VBP) is changing the way health centers will be paid by third-party payors including Medicare and Medicaid. Most VBP models introduce the payment mechanism of rewarding CHCs for managing the total cost of care of their patients. Although FQHC wraparound protections remain, CHCs must become familiar with how VBP arrangements will impact financial operations and begin the processes of both adjusting financial and operational management systems and forecast the impact such payment models will have on the bottom-line and cash flow.

This session will begin with an overview of VBP arrangements, the individual payment components, and what can be done today to prepare for the future. In addition, the presenters will discuss the key drivers to financial success under VBP and what business processes and reporting systems will require adjustment. Since care coordination, paying for quality, and managing the total cost of care are front and center in VBP, the session will also begin to address forecasting revenue under VBP and the "new" costs of participation so that centers can understand the potential return on investment (ROI) and demands on cash flow and overall operations.

• - Learn what VBP arrangements are and how health centers can begin to prepare today for them.
• - Determine the key drivers in VBP arrangements to achieving financial success, including what business processes and reporting systems will need to be evaluated.
• - Understand the "new" costs of participation and demands on existing cash flow and overall health center operations in VBP arrangements, and their effects on the potential ROI.