What Providers Should Consider Before Jumping into the Payer Market
By Calvin Glenn-Oracle on Jul 29, 2014
The evolution of ACOs in the market has led to an increase in provider based payer organizations, the addition of some 400 this year require a new level of data sharing and analytics. The ability to analyze impacts of changing payment models and care guidelines on healthcare delivery and payment will define the stability and growth of the integrated organization.
Kathy McCarthy, Director of Sales Consulting for Oracle Health Insurance, discusses the topic in today’s post:
With the ACO model, healthcare organizations will continue to acquire groups and services within a specific demography. Using integrated analytics to predict the impacts when entering new markets where different services and payment models overlap will be a key for accelerated expansion.
Providers need to consider several criteria before entering the payer market. The provider organizations needs to:
- Understand the complexity of the market
- Have clear goals
- Conduct the necessary research
- Evaluate delivery systems
Research has shown that there is no correlation between success and market share, location or deep pockets.
Providers need to:
- Have positive relationships with other health systems in your area.
- Have existing risk-based contracts with your providers.
- Look at your market.
- Have a relationship with a payer organization
Providers will require systems that can:
- Respond to rapid changes in policy
- Merge clinical and financial data
- Provide quality cost-efficient care
- Support HIPAA PHI requirements
- Create new sustainable payment and delivery models
Operational efficiency will be a key to success. Payers will need to have IT and analytics that will play an important role .Being able to merge clinical and financial data will be crucial to success. They need to improve the overall IT efficiency and gain more predictable costs and outcomes.
IT needs providers should consider:
- Be prepared to implement changes required to improve performance.
- Need for analytic capabilities.
- Need for alternate payment arrangements.
- Need to quickly introduce new plans, support efforts to reduce operating costs and take advantage of the emerging opportunities.
- Many legacy systems are decades old and require costly and time-consuming hard coding to make even simple changes.
- Seek and require rules-based systems.
- Seek new payment models.
- Provide quality care for a reasonable cost.
Oracle Health Insurance components help address these issues by providing:
- Rules-based componentized products allow plans the agility and flexibility needed for success.
- SOA-based components allow plans to purchase solutions that do not require an entire new system.
- Scalability and reliability are built into all Oracle products.
- Solutions can be delivered in multiple ways.
Learn more by watching the recent webcast, How to Navigate the Emerging Trend of Providers Shifting Focus to Healthcare Financing.
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