How Health Insurance Providers Can Streamline Value-Based Contracts

Health insurance providers are always looking for ways to streamline their operations and improve their quality of care. One way to do this is by entering into value-based contracts with healthcare providers. These contracts incentivize healthcare providers to provide quality care at a lower cost. However, managing these contracts can be difficult, especially for health insurance providers not used to dealing with them. Nevertheless, healthcare professionals are beginning to embrace value-based treatment because of its numerous advantages. As a result, today’s healthcare professionals take part in “value-based reimbursement” to the tune of 57%.

In this blog post, we will discuss how health insurance providers can streamline their value-based contracting process and make it easier to manage these contracts using the power of Certinal digital signatures and iContract.

What is value-based care, and what it means for healthcare providers?

Value-based care is a substitute and prospective replacement for fee-for-service reimbursement that rewards quality over quantity. Value-based care is a payment that compensates providers for both efficiency and effectiveness by linking costs for care delivery to the level of care they deliver. This payment has replaced fee-for-service reimbursement, which retroactively compensates providers for services rendered per bill charges or yearly fee schedules.

The Centers for Medicare & Medicaid Services (CMS) has introduced various value-based care models, such as the Medicare Shared Savings Program, Next Generation ACO Model, and Pioneer Accountable Care Organization (ACO) Model, to change how healthcare providers are compensated for the services they provide.

Private payers have also embraced similar accountable, value-based care approaches. In addition, federal officials have suggested several reimbursement plans that would reward healthcare professionals for the high quality of treatment they deliver to patients, in contrast to the conventional fee-for-service reimbursement model, which emphasizes the number of services. Value-based care aims to promote the triple goals of strengthening population health management techniques, enhancing patient care, and lowering healthcare expenditures.

Simply put, value-based care models focus on patient outcomes and how effectively healthcare professionals can enhance the standard of care based on particular criteria, such as lowering hospital readmission rates, utilizing approved health IT, and improving preventative care.  

Why is value-based care important for health insurers?

HHS reported that a value-based, alternative payment model accounted for 20% of Medicare payments. In the same announcement, HHS noted that value-based payment models had reduced hospital readmissions among Medicare beneficiaries by 8% and that ACO programs had helped Medicare save $417 million.

According to updated data, savings have grown by a factor of ten since 2015, reaching a total of $4.1 billion. In addition, according to the most recent CMS projections, value-based models will be used for all Medicare payments by 2030.

Most healthcare providers are still getting used to value-based care, and many are still working to integrate suitable systems into their daily operations. In addition, the cost will likely rise in the upcoming years, given how quickly healthcare professionals implement value-based contracts. As a result, healthcare organizations will look for insurance partners who can efficiently and effectively draft, organize, and carry out payment or compliance contracts.

Improve value-based healthcare with digital transformation

There is a more effective method for managing value-based forms and contracts—one that gives insurers the structure they require to handle even the most complicated agreements in an efficient and timely manner.

Many insurance companies use contract lifecycle management (CLM), digital signature healthcare technologies, and healthcare providers to speed up contracting, lower costs, and eliminate mistakes. Certinal digital signatures + iContract(CLM) can offer your firm a comprehensive digital solution that provides the following advantages:

• Increased Contract Speed
• Enhanced Security
• Lower transition cost

A unified digital signature solution with doctor signature generator eliminates the most time-consuming steps of a conventional, paper-based agreement process by streamlining every stage of the document management process, from document templates and digital signing to negotiation and management. This unified solution is the most efficient in getting doctor’s signatures and physician’s signatures digitally in a secure way.

Bottom Line:

Insurance providers must find solutions for the real-world effects of more intricate agreement procedures as the healthcare sector’s adoption rate of value-based care rises. By automating the parts of the healthcare payment process that require the most labor and money, Certinal and iContract make the transition for health insurance carriers easier.

Find out more about how Certinal (HIPPA compliant e-signature solution) can assist you in getting ready for the future of healthcare right now. Book a demo or write to us at switchto@certinal.com