Health Care Transformation Task Force Reports Increase in Value-Based Payments

Progress Report Shows Nearly 40% Increase of Members in Value-Based Payment Arrangements

WASHINGTON (April 12, 2016)–The Health Care Transformation Task Force, a consortium of patients, payers, providers and purchasers working to transform the U.S. health care system, today reported that 41 percent of its provider and payer members’ business were in value-based payment arrangements at the end of 2015, up from the 30 percent in 2014.

Providers reported that slightly more of their business (42 percent) was in value-based arrangements than payers (38 percent).

The Task Force defines value-based payment arrangements as those which “successfully incentivize and hold providers accountable for the total cost, patient experience and quality of care for a population of patients, either across an entire population over the course of a year or during a defined episode that spans multiple sites of care.” The alternative payment methods members reported include global budgets, bundled payments, and shared savings.

The numbers are based on responses from 23 of the 27 provider or payer Task Force members that responded to the year-end survey. Members responding included five of the nation’s top 10 non-profit health systems and four of the top 25 health insurers. The averages reported are the combined average of each system, and they are not weighted to reflect the organization’s size.

“This substantial progress toward our goal demonstrates the Task Force members’ commitment to accelerating the transformation to a value-based payment models that improve care and lower costs,” said Task Force Executive Director Jeff Micklos.  “While much work remains, Task Force members have built momentum over the past year that sets a positive tone as they move toward the goal of 75 percent in Triple Aim-based, value-based care arrangements by 2020.”

Task Force members were asked to respond to one of following three questions, based on arrangements in place as of December 31, 2015:

  1. The percentage of the health plan’s total membership whose care is provided by a provider contracted under a global budget, bundled payment methodology, or a shared savings arrangement (Payer category option);
  2. The percentage of total services that are provided by a provider contracted under a global budget, bundled payment methodology, or a shared savings arrangement (Payer category option); or,
  3. The percentage of current revenue that is from contracts that are under a global budget, bundled payment methodology, or a shared savings arrangement (Provider category approach).

The Centers for Medicare & Medicaid Services announced in March that an estimated 30 percent of Medicare payments were tied to alternative payment models as of January 2016.

A full list of Task Force members – all committed to putting 75 percent of their business into value-based arrangements that focus on the Triple Aim of better health, better care and lower costs by 2020 – can be found at www.hcttf.org.

About Health Care Transformation Task Force

Health Care Transformation Task Force is a unique collaboration of patients, payers, providers and purchasers working to lead a sweeping transformation of the health care system. By transitioning to value-based models that support the Triple Aim of better health, better care and lower costs, the Task Force is committed to accelerating the transformation to value in health care. To learn more, visit www.hcttf.org.