Are you tracking payment reform momentum on behalf of your employer clients? For the first time, stakeholders in Colorado, New Jersey, and Virginia know how much and what types of payment reform are occurring in their states. Catalyst for Payment Reform, an independent non-profit is on a mission to catalyze employers, public purchasers, and others to implement strategies that produce higher-value health care and improve the functioning of the healthcare marketplace, recently released state scorecard results using data from 2016 (the most recent year available) collected through health plan surveys with the help of local sponsors.
The Scorecard on Payment Reform 2.0 project expanded on CPR’s earlier scorecards by including an additional 12 metrics to help shed light on whether payment reform correlates with improved healthcare quality and affordability across the healthcare system. CPR selected these “macro-indicators” with the help of a multi-stakeholder advisory committee to serve as a parsimonious set of metrics that enables states to track how much payment reform there is, what types, and the impact it is having. CPR recently featured the work, which was co-funded by the Laura and John Arnold Foundation and the Robert Wood Johnson Foundation, in a Modern Healthcare commentary.
What did CPR find in the commercial market? CPR found that payment reform activity was more prominent in each state’s commercial market, with the commercial market of all three states having more than half of all dollars flowing through payment reform programs. Pay-for-performance and shared savings arrangements were in the most prevalent types of arrangements in all three states.
Despite the common misconception that payment reform implies a move away from volume-based incentives, the Scorecards found that the vast majority of value-oriented dollars still relied on a fee-for-service architecture. Want to dig deeper? Download the Scorecards and accompanying methodology reports: