Home Health Care News recently featured VNS Health in their publication about how home health organizations are focusing on payer innovation. As more and more organizations shift their overall strategies to payer innovation, VNS Health has pivoted its main focus to value-based contracting and Medicare Advantage (MA).
“You’re at risk for total cost of care, or rehospitalization, and now, if you decide to cheat and provide less
visits, and your rehospitalization goes up, you’re going to have to pay a downside penalty,” Devin Woodley, vice president of managed care contracting and B2B sales, told HHCN. “When the rehospitalization rate goes down, we’ll actually share in those savings, you actually can earn a bonus. That’s how we’re able to win the plans and gain their trust.”
Currently, the organization’s MA book of business is 97% episodic and 3% visit-based and has 68% managed care penetration in New York. Devin pointed out how payer diversifications will become much more crucial for home health providers in the future.
“It allows us not to be beholden to one individual payer, if we’re having a difficult negotiation,” he said. “It also helps us on the referral side. One of the reasons why referral sources love us is because we’re contracting with, essentially, every major payer.”
HHCN subscribers can read the full article here.