Impact Beyond the Mandates
It’s anticipated that 50 percent of Medicare spending will be through APMs by the end of 2018, and home care agencies already are 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 home care data to identify high-quality, efficient providers who can help them achieve success.
Critical Timing for Preparation
Preparing an organization to navigate APMs takes time. Organizations need to plan six to 18 months out to successfully measure, monitor and manage processes and be able to demonstrate results. Because these models rely on historical data, organizations that prepare have an opportunity to expand market share and increase referral volumes. Regardless of whether an APM currently affects your marketplace, now's the time to prepare.
Skills, Resources & Time Investments
Developing tools and processes on your own to plan your strategy can be labor-intensive. However, working with your BKD advisor to employ tools and strategies can be a cost-effective option that makes the transition to an APM manageable for leadership and staff. The transition from volume to value requires leadership involvement from cross-functional teams to implement best practices and drive change management.
How to Start Preparing
Diligently conducting an initial analysis to identify and develop an effective strategy is the first step for understanding and assessing the effect of APMs in your market and competitive landscape.