Value Based Contract Template

Value based contracts sometimes referred to as risk sharing agreements or outcomes based contracts are a type of innovative payment model that brings together two key stakeholdershealth care payers and biopharmaceutical manufacturersto deliver medicines to patients.

Value based contract template. Value based contracts can come in many forms and range from bundled payments to shared savings contracts to accountable care organizations. We can do this because payors want to reward and help invest in organizations like villagemd that demonstrate results in value based care. Value based purchasing contracts in healthcare transition from volume to value is challenging but widespread. Value based programs reward health care providers with incentive payments for the quality of care they give to people with medicare.

What is value based contracting. Indication based management contracts determine the value of the drug by the relative cost of a patients health condition such as associated costs of a chronic disease. Considering the importance of value based healthcare and the ambition of hospitals and health insurers to offer excellent quality of care there is a high need for innovative forms of value based contracts. Villagemds contracts also provide enhanced reimbursement to most physicians.

What are the value based programs. Value based contracting is a contract with a provider that contains any of the following alternative payment methodologies a portion of the providers total potential payment is tied to a providers performance on cost efficiency and quality performance measures. Identifies a set of outcomes mutually recognized by payers and manufacturers that reflects the clinical or economic benefits provided by a therapy for a targeted use in a specified population. Payers and providers need to work together to form value based contracts and be successful in the agreement.

Value based reimbursement contracts provide a financial mechanism for physicians to achieve quality and cost goals sharing in the financial value thats created. Developing the value based contract for measurable outcomes since value based designs achieve predictable and sustainable dividends within 2 3 years its appropriate to split the payments for highly effective or high cost drugs and procedures into a 3 year contract with yearly deliverables. Getting into value based contracts. A value based contract with boehringer ingelheim effective january 1 2019 for jardiance empagliflozin an oral type 2 diabetes medicine also indicated to reduce the risk of cardiovascular death in adults with type 2 diabetes and established cardiovascular disease.