Outcomes-Based Contracting(tm): The Value-Based Framework for Optimal Accountability

The importance of aligning incentives cannot be overstated: for health status to improve all of the stakeholders must be focused on producing a healthier person or persons, which is an investment strategy. But no rational investor just places money down; he or she analyzes the prospects, quantifies the risk, and invests where the best economic opportunities are. The dividend is dependent upon how well the investors’ goals and rewards line up with the investee’s goals and rewards. The importance of this alignment cannot be overstated when considering what is at risk in improving health. The exquisite tension between health and economics can be alleviated when the focus is on engagement and accountability for outcomes. The engagement is not just on the part of the consumer or patient. It carries into the payer or plan sponsor, and it travels across all of the service providers (health plan, clinicians, communications companies, manufacturers of equipment and pharmaceuticals, hospital systems, information management companies). If one of these stakeholders is “squeezed,” while others prosper, the friction is increased. If the dividends of reduced health risks and costs are shared across the stakeholders, then everyone wins–the friction is reduced. The goal, then, is to find that harmony, and it is best found in engagement and accountability that produce healthier people, healthier organizations, and healthier communities. This is accomplished through an Outcomes-Based Contract. Read more from author Cyndy Nayer, and learn how the Outcomes-Based Contractingtm Framework will propel the health, wealth, performance goals of people, organizations and communities…Outcomes-Based Contractingtm: The Value-Based Framework for Optimal Accountability

Leveraging Health: The Center’s First Book On Value-Based Design

Leveraging Health : improve health status and bend the trend on financial inflation with value-based designs, by Cyndy Nayer, Jack Mahoney, M.D., and Jan Berger, M.D., is available.  Learn the levers from real-world case studies in value-based design! Read More or Buy Now

Fellows of the Center–Leaders in Value-Based Design

2010 Fellows of The Center for Health Value Innovation

ST. LOUIS, Mo. – August, 2010 – Twenty-one of the nation’s leading health benefits executives who are committed to improving engagement and accountability in health management have been named Fellows of The Center for Health Value Innovation.  As the nation’s premier benefits leadership exchange, Center Fellows will accelerate the adoption of innovation that supports the five C’s of sustainable behavior change: commitment, concern, cost, communication, community.

“This honorable title of Fellow goes to a rarified group of individuals who have not only implemented value-based design in their own organizations, but have also demonstrated alignment of incentives, propelling the work of the Center,” says Cyndy Nayer, president and CEO of the Center.

The Center is developing the largest database of value-based levers—incentives, insurance plan designs, and services that companies use to improve the health value of investments in their workforce.  Through interviews, surveys, and collaborative intelligence of Center members, the acceleration of adoption shows that value-based benefit designs (VBD) are a significant part of health and performance investing.

“If value is measured by outcomes, then purchasing must embrace outcomes–based contracting, measured by clinical, financial and performance determinants,” adds Nayer.  “Our Fellows advance the goal of linking health value to accountability for outcomes in our communities.”

The Center recently announced the results of its survey, “Value-Based Design 2009,” for which they engaged  Buck Consultants, a global employee benefits and human resources consulting firm, confirming that employers believe VBD improves employee health and productivity.

“The next Buck survey, detailing the changes anticipated in health reform, begins this fall,” says Nayer.  She also points to the Center’s increased focus on employee engagement, system alignment, and economic predictability, which ties in with its goal to expand the definition of VBD and link accountability to health and performance.

Michael Taylor MD, Medical Director, Health Promotion, Caterpillar and Chairman of the Center’s Board, concurs, “These leaders demonstrate a variety of value-based designs with replicable examples of improved health outcomes.”

2010 Fellows include:

About The Center for Health Value Innovation

Information Exchange for Value-Based Design

The Center for Health Value Innovation has grown into the nation’s premier organization dedicated to sharing the evidence of improved health and economic outcomes through improved health engagement and accountability.  www.vbhealth.org

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Decision Matrix For Value-Based Designs

The Center for Health Value Innovation announces white paper, Leveraging the Value of Health:  A Decision Matrix for Value-Based Designs.  Written by Cyndy Nayer and Gregg Kamas, this document details the levers necessary to solve for waste reduction, future risk reduction and optimal individual health-wealth performance.   Leveraging Health: A Decision Matrix for Value-Based Design, Webcast: Decision Matrix for Value-Based Designs 12.3.09

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