How COVID is Affecting Payment Methods

I have a sense that this current crisis may be the push that value and risk needed to push FFS payment methods off their perch atop the hierarchy.

Providers whose business models are predicted on seeing patients and using high cost settings are now experiencing a new vulnerability. When you can not generate revenue directly from utilization, the idea of managing and getting paid for a population -- be it capitation, percent premium or some other form of risk -- seems more appealing.

When that is combined with the irreversible behavioral changes (like the use of telemedicine) - that are underway, I think the changes we are seeing will be sustained. Person based, rather than utilization based, payment is going to shape our future delivery system.

I believe managing these changes will expose more value and opportunities for our Nascate clients.

-Bill Kelly

William P. Kelly is our Chief Executive Officer. He has extensive executive level experience in healthcare leadership, policy, and strategy and previously founded and served as President and Principal of Treo Solutions, LLC. As a widely recognized leader in payment policy and an expert in healthcare analytics, services, and M&A, William has published articles, edited books, and spoken nationally about the business of healthcare.