Putting the ‘value’ in value-based payments – The Health Care Blog

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By JOSH SEIDMAN

Like Matthew Holt, I’ve additionally been ranting about the truth that “We’re spending way too much money on stuff that is the wrong thing.” As Matthew mentioned, “it’s a rant, however a rant with a degree!” And that’s loads higher than most rants today. Along with having a degree, I’m additionally bringing lots of knowledge to my rant.

Extra particularly, we’ve recognized for a very long time that medical care solely drives 20% (possibly much less) of well being outcomes, but we proceed to spend increasingly on it.

We do this regardless of the well-documented undeniable fact that the U.S. performs worse than most OECD international locations regardless of spending much more. I bear in mind, in my first well being care job in 1990, being blown away that the U.S. spent $719 billion on well being care (or $1.395 trillion in 2022 {dollars}). Right here we’re, trillions of {dollars} later ($4.465 trillion) doing the identical factor and anticipating a special end result.

After greater than 30 years in well being CARE, I made a decision that I actually wished to start out doing one thing about HEALTH, which is why 3 years in the past I joined Fountain House, the founding father of the clubhouse movement, a psychosocial rehabilitation mannequin for folks with severe psychological sickness (SMI)—a mannequin now replicated by 200 U.S. clubhouses and one other 100+ in additional than 30 international locations world wide. It was truly folks residing with SMI that launched Fountain Home in 1948, realizing way back that addressing social drivers of well being provided a brand new highway to restoration and rehabilitation. Now 75 years later, we’re lastly seeing some components of the well being care system come to phrases with the need of addressing health-related social wants.

With many years of evidence behind us, Fountain Home has spent the final yr and a half building an economic model to grasp clubhouses’ societal financial affect when one takes into consideration a variety of prices—psychological well being, bodily well being, incapacity, felony justice, and productiveness or misplaced wages.

The web affect for the typical individual served by clubhouses is greater than $11,000 per yr—and twice that quantity for somebody with schizophrenia. (We additionally know that clubhouses have a big impact on high quality of life, company, vanity, and lots of different essential facets related to restoration and rehabilitation—which is personally far more essential to me, simply not the topic of my present rant.)

The medical prices alone are dramatic and, curiously, it’s a reasonably even stability between psychological and bodily prices. Importantly, for the typical clubhouse member, the social prices outweigh the medical price advantages.

U.S. clubhouses at the moment serve roughly 60,000 folks. That’s a tiny fraction of the greater than 15 million folks within the U.S. residing with SMI. If we might even assist 5% of them with clubhouses, an extrapolation of our mannequin suggests that will generate greater than $8.5 billion per yr in financial savings to the general public, to not point out dramatically altering the life trajectories for therefore many individuals.

The broader level right here is that we don’t need to make the alternatives we do from a societal perspective. When you evaluate the U.S. to different developed international locations, you discover a whole flip in emphasis on social assist versus medical care.

On condition that it’s unlikely that we’re going to instantly dramatically shift the stability of assets within the U.S., we have to discover new methods to encourage a larger emphasis on addressing health-related social wants. As we push towards new value-based cost fashions, we have to discover methods to reward efficiency for attaining social outcomes (e.g., employment ranges, instructional attainment, housing stability) in addition to the patient-reported outcomes (e.g., high quality of life, loneliness discount) that we all know contribute vastly to restoration and rehabilitation.

Joshua Seidman, PhD, is Chief Analysis and Information Officer for Fountain Home, a nationwide psychological well being nonprofit working for and alongside folks with severe psychological sickness to assist their restoration.

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