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They won’t always be FFS and need to look towards future
Reimbursement will eventually be tied to outcomes. Right now quality scores, incentive payments, and total cost of care reimbursement models are paving the way. FFS=antiquated
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FFS is supposed to go away at some point, places already have incentives when they tie performance to outcomes so it’s good to start as early to set internal benchmarks and continue to track and do well. Consumers who pick plans and even doctors/facilities can also see if the provider is a top rated provider by outcomes (some plans like BCBS list it on their roster). Esp if the US truly goes the route of Medicare for All/single payer system one day, you will have to perform under value based care standards.
All of the above, and to add another element, preventative care helps mitigate the ER visit from a patient who can't afford to pay the bill, even with insurance. Helps reduce risk of writing losses on complex cases in the future.
Doctors will actually bill for thing patient needs bc they know they will be based on patient outcome rather than just billing
Incentive structures that support healthcare quality
The foundation is moving from volume to value. Eventually, FFS model of reimbursement will be replaced. Preventative care is a good first step for these hospitals that are predominantly FFS to get better at improving patient outcome and managing risk so that they can eventually move to more robust risk-based arrangements. The more the risk, the more $$ are stake and eventually incentivizing health systems to produce better patient outcomes by keeping them out of the hospital.
Besides what folks have already said about the shift towards value based care instead of FFS, another reason hospitals may invest in preventative care and/or addressing social risks (homelessness, food insecurity) is because some hospitals experience high rates of ED utilization and in many cases these are preventable. Especially because many non profit hospitals end up paying some of these high costs (charity care) if the patient cannot pay for their ED visits (under or uninsured). If they invest more in prevention and addressing SDoH, they can keep their costs down too.