Supporting Comprehensive Care at Safety-Net Providers Through Value-Based Pricing

March 1, 2023

Although safety-net care systems are essential for providing healthcare to under- and uninsured people, often from marginalized backgrounds, comprehensive care is often out of reach due to a dearth of funding. One way to help address this care disparity, according to a newly published article in Health Affairs, is to implement value-based care pricing models.

According to the authors, ““Value-based” care – with person-level payments linked to accountability for whole-person care – can equip providers with tools for driving care coordination, quality, and financial resiliency. Yet, safety-net representation in value-based payment (VBP) models remains relatively limited compared to growth for other types of providers. This disparity is due in part to misaligned funding streams, lack of capital investments, and unsustainable payment design features. However, recent reforms including those from ACO REACH and the expansion of Medicaid flexibilities through Section 1115 waivers have increased opportunities for safety-net providers to participate in VBP arrangements, especially as ongoing equity efforts in the VBP policy landscape continue to target safety-net providers.”

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