Capella University Value Based Purchasing and Shared Risk Models Report

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Business Finance

Capella University


Write a 2-3 page report about the implications of value-based purchasing and shared risk models for your selected organization. Include an analysis of evidence-based strategies to develop an effective organizational culture where these models help to position the organization for the future.


As a health care leader, you will need to continually analyze the role the organization plays in futuristic models of value-based purchasing and shared risks. These models are constantly changing, so an astute health care leader develops an organizational culture that is agile, innovative, and responsive to be best positioned for the future. The key is to ensure the alignment of the organization’s structure with strategic initiatives driving customer-focused results.


Health care organizations are increasingly expected to link provider payments to improved performance. This model aims to hold providers accountable for the quality of care they provide in a cost-effective environment. 

For the organization you have been analyzing throughout this course, identify critical components of a value-based purchasing model. Analyze budgetary and financial implications of value-based purchasing on health care management practices and decisions.

Then, identify examples of shared risk models, such as population health. Analyze budgetary and financial implications of shared risk models on health care management practices and decisions.

Begin analyzing evidence-based strategies to develop an effective organizational culture, using relevant data and measures such as benchmarks, research, and best practices. Such evidence-based strategies should help position the organization for the future, particularly given an environment of value-based purchasing and shared risk models.

Your Role

You are a senior leader of a health care organization, and you are in the midst of your complete analysis of the organization. At this point you have reviewed the strategic initiatives, the organizational structure, and barriers to access, quality services, and cost effectiveness. The next step of the analysis is to consider the organization’s role in value-based purchasing and shared risk models.

From your readings and research, you are learning that hospital value-based purchasing is an incentive program first introduced by CMS but now adopted by many managed care organizations. Value-based purchasing ties various quality care clinical best practices to hospital financial incentives. In addition, value-based purchasing ties in a patient’s reported subjective experience during their hospital stay. Hospitals are no longer being paid based on the quantity of services provided; rather there is now an emphasis on the quality of those services. These quality determinants are somewhat based on benchmarks set by hospitals in general, as well as year-over-year improvements within the same hospital setting. So there is a great deal at stake for hospitals to collect and use data to ensure optimal quality care and experiences are achieved. Now more than ever, such data plays a vital role in all decision making.

As a natural progression in the vision to improve access to care, provide quality care, and decrease cost, shared risk models are being field tested. Models, such as population health, focus on the role health care organizations play to ensure the overall wellness of communities. Such models require providers at all levels of health care, not just physicians and hospitals, to be accountable for wellness and prevention services; timely and accurate diagnostics; and cost effective, quality, and available treatment regimes. This model will require the creation of strategic partnerships among the various types of health care organizations to improve overall community health through innovative means. It ties significant financial incentives to encourage such strategic partnerships through a shared risk. Pharmaceutical companies, medical device firms, diagnostic services, managed care organizations, hospitals, physician practices, supply chain networks, et cetera all have a role in making community wellness possible. Sometimes this reaches outside the more traditional health care sector to include the likes of housing providers, weight loss clinics, and workout facilities. All such services are necessary in order to enhance the wellness of the community. 

Though most of the literature applies value-based purchasing or incentives and shared risk to hospital settings, the truth is all health care organizations need to support these endeavors in order to remain competitive in this new world of health care delivery. As a senior leader of any health care organization, it is vitally important that you understand your role in this process to best position your organization as a strategic partner. This will allow you to maximize your organization’s success in this new era of health care.


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Value-Based Purchasing and Shared Risk Model
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Value-Based Purchasing and Shared Risk Model
The healthcare industry is ever-changing given the technological advances and scientific
discoveries that are occurring in today’s world. Mayo Clinic is a health facility that has been able
to keep up with the changes while still ensuring quality care for its patients. One of the strategies
undertaken by the organization to ensure the quality of care in line with its strategies is the
application of value-based purchasing and shared risk model. This paper discusses the
components of value-based purchasing and shared risk models undertaken by Mayo Clinic and
their implications on management practices and decisions.
Value-Based Purchasing Models
One of the components of value-based purchasing models for the organization is New
Organizational Models that align physical incentives with ...

Really useful study material!


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