Building a value model for population health management

• Published in: Healthcare Financial Management Vol. 71; no. 3; pp. 40 - 47
• Main Author: Marino, Daniel J
• Format: Journal Article Trade Publication Article
• Language: English
• Published: United States Healthcare Financial Management Association 01.03.2017
• Subjects: Ambulatory care; Analysis; Capitation; Chronic obstructive pulmonary disease; Cost control; Executives; Health administration; Health care costs; Health planning; Health services administration; Initiatives; Leadership; Length of stay; Medical care, Cost of; Methods; Patients; Revenue sharing; United States
• ISSN: 0735-0732

[...]the exhibit shows that the COPD program generates about $500,000 annually in shared savings without even one hospitalist, and that additional shared savings are added with each added hospitalist ($450,000 from adding just one, as mentioned previously). [...]adding a third hospitalist brings an additional $400,000 in shared savings at a cost of $200,000 (roughly Point A). There is still opportunity at that point for additional shared savings from additional hospitalists, but the amount of shared savings achievable drops below $200,000, the cost of employing a hospitalist, at about 10 employed hospitalists. [...]the cost of employing the 1 ith hospitalist would exceed the benefits in additional shared savings. [...]the organization should work with clinical leaders to obtain data on care management program activities and outcomes, including data on investments such as labor, technology, and any infrastructure spending. [...]hnancial system data should be pulled in to provide patient-level, line-item records on claims, utilization, place of service, and eligibility, including date and allowable (payment) helds.