Alternative Payment Models (APM)

BKD believes the future of health care includes a shift to alternative payment models (APM) based on fee-for-value payment models. A data-driven approach will be crucial as providers strive to showcase their value through key metrics. Successfully navigating APMs means demonstrating quality outcomes while simultaneously improving the patient experience and lowering the cost of care.

BKD health care professionals have developed data-driven solutions to enhance your organization’s ability to navigate APMs and successfully manage programs with collaborating entities.

Impact Beyond the Mandates

It’s anticipated that 50 percent of Medicare spending will be through APMs by the end of 2018. Providers are already being affected by APM quality and cost focus. In the current bundled payment models, hospitals typically bear the financial risks and are held accountable for an entire episode of care, including acute and post-acute services. These hospitals are analyzing data to identify high-quality, efficient providers who can partner with them to achieve success.

Critical Timing for Preparation

Preparing an organization to navigate APMs takes time. Regardless of whether an APM currently affects your marketplace, now is the time to act. Organizations should give themselves at least six to 18 months of planning to successfully measure, analyze, monitor and manage processes, as well as demonstrate results to potential partners. Because these models rely on historical data, prepared organizations will have a head start in expanding market share and increasing referral volumes.

Skills, Resources & Time Investments

Developing strategic tools and processes on your own can be labor-intensive. Working with your BKD advisor can be a cost-effective option that makes the transition to an APM manageable for leadership and staff. The transition from volume to value—and implementing best practices that will drive change—requires leadership involvement from cross-functional teams.

How to Start Preparing

Diligently conducting an initial analysis to identify and develop an effective strategy is the first step for leadership and staff. Doing this helps all involved better understand and assess the effect of APMs, the potential opportunities in your market and the competitive landscape.

Contact your BKD advisor to see how BKD can help your organization shift to an APM.

Steve Smith

Managing Consultant
816.221.6300

Chris Murphy

Partner
918.584.2900

University Health Care System

“University Extended Care, Inc. selected BKD, LLP as its professional services provider because BKD offers financial, clinical and operational solutions across the entire health care continuum. It was important to us to work with an industry leader who understands the intricacies of skilled nursing, home care, hospice and senior living, i.e., the entire post-acute care segment.”

— Tom Lowenkamp, Vice President of Continuing Care
University Health Care System
Augusta, Georgia

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