The Governance Institute Releases Strategy Toolbook to Support Hospital Leaders in Managing Two-Sided Risk Contracts
October 17 2018 - 9:00AM
New resource offers health system executives and
boards tips on how to prepare for and succeed in two-sided risk
arrangements
The Governance Institute, a service of NRC Health, today released
its brand-new resource, Strategy Toolbook: Accelerating Value with
Two-Sided Risk, designed to help executives and boards of health
systems prepare for and successfully manage second-generation
Accountable Care Organizations (ACOs) and other “two-sided” risk
contracts. As new risk models for value-based care are implemented
in hospitals across the country, and may soon be mandatory, The
Governance Institute’s Toolbook gives healthcare organizations tips
on how to operate two-sided risk arrangements and better position
themselves for more opportunities to attain meaningful cost
control. The number of Medicare ACOs has grown more than 1,400
percent over the past several years, increasing from 61 in 2011 to
923 in 2017. Despite the incredible growth in coordinated and
value-based care contracts, these alternative payment models have
not yet resulted in compelling savings. To overhaul and simplify
the ACO system, the Centers for Medicare & Medicaid Services
(CMS) proposed a new rule in August 2018 that will require
accountable care organizations, the majority of which are in
one-sided risk or shared savings programs, to enter into two-sided
risk contracts after only two years in the program. As a result of
the new rule, these traditionally upside-only arrangements would be
replaced with those that include some form of downside risk.
Evidence shows that such arrangements provide more opportunity to
cut expenses and help bend the cost curve over time.
“The healthcare industry has seen a lot of growth in two-sided
risk arrangements in recent years, and that will likely continue,
especially considering the new CMS rule,” said Jona Raasch, CEO of
The Governance Institute. “For many boards and CEOs, the prospect
of managing new risk models is a huge and often daunting
undertaking, but a necessary step in decreasing overall costs. Our
goal with this new resource is to ensure that our members are armed
with the right background and foundational information they need to
make careful and strategic decisions about entering into two-sided
risk contracts, now and into the future.”
The Toolbook and its accompanying discussion guide explore the
implications of two-sided risk and provide healthcare executives
and boards with an achievable checklist of next steps and
capabilities they need to implement to successfully enter into
risk-based contracts. The Toolbook also includes case examples of
what leading organizations, like Hackensack Meridian Health, are
doing to ensure the right infrastructure is in place to support
these new contracts.
“Two-sided risk contracts are still challenging structures for
provider organizations,” said Debra Ryan of Kaufman, Hall
& Associates, LLC, a contributor to the publication. “But
as the industry gradually shifts to assuming greater risk over
time, it’s mission critical that healthcare leaders not only
understand why this trend is significant to the industry, but also
that they have the necessary tools and information to move forward
in this new era of healthcare. The Governance Institute’s Toolbook
will be a significant resource for organizations looking to take
such steps and build out risk-based capabilities.”
To learn more about The Governance Institute’s Strategy
Toolbook: Accelerating Value with Two-Sided Risk and discussion
guide, call 877-712-8778, or visit:
https://www.governanceinstitute.com/page/KT_ACOs.
About The Governance Institute The
Governance Institute provides trusted, independent information and
resources to board members, healthcare executives, and physician
leaders in support of their efforts to lead and govern their
organizations.
The Governance Institute is a membership organization serving
not-for-profit hospital and health system boards of directors,
executives, and physician leadership. Membership services are
provided through research and publications, conferences, and
advisory services. In addition to its membership services, The
Governance Institute conducts research studies, tracks healthcare
industry trends, and showcases governance practices of leading
healthcare boards across the country.
For more information, call 877-712-8778, write
to info@governanceinstitute.com, or
visit www.governanceinstitute.com. The Governance Institute is
a service of NRC Health.
About NRC Health For 37 years, NRC Health
(NASDAQ: NRC) has been committed to achieving human understanding
and bringing healthcare organizations closer to their customers
than ever before by illuminating and improving the key moments that
define an experience and build trust. Guided by their uniquely
empathic heritage, proprietary methods, skilled associates, and
holistic approach, NRC Health helps its customers design
experiences that exceed expectations, inspire loyalty, and improve
well-being among patients, residents, physicians, nurses, and
staff.
For more information, write to info@nrchealth.com, or visit
www.nrchealth.com.
Press Contact Jennifer Lyle Public Relations
for NRC Health nrchealth@barokas.com
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