Creating a Value-Based Care Model

Creating a Value-Based Care Model


This is the first blog in a series of five from Dr. Jon Hart on value-based care.


We can do better in healthcare. We need to pursue a model that amplifies the caring, compassionate nature of our caregivers rather than squelch it. Value creation is that framework.


Consensus exists among experts that the US healthcare system is dysfunctional. We spend more money per capita on healthcare than any other nation, yet our outcomes are among the worst compared to our peers. 


A large part of this is due to our volume-based, fee-for-service healthcare model, paid by a third party that is not the actual consumer of the services and that only incentivizes price and volume. Communication is spotty at best, and huge gaps occur in collaborative efforts often leaving patients to fend for themselves.


The Value Equation in Healthcare


Neither the quality of the outcomes nor the experiences of the patients have been intentionally considered in healthcare design or provision for decades, which makes the patients, providers, and staff feel like widgets, commodities, and cogs in this healthcare delivery machine we have operated since the early 20th century. To salvage US healthcare — and then help it thrive — we need to start creating value.


Value is relational, whereas volume is transactional. Value is longitudinal versus the episodic nature of volume. Value retains and grows its membership while volume tries to increase billable encounters. 


Volume is based simply on price multiplied by unit. The Value Equation, though, looks like this:

value based care equation


Value can be created through the applied concepts of Population Health Management — risk stratification (cost), plan of care (quality), and longitudinal support (experience). 


Individual and cohort risks need to be identified, including assessing Social Risks in a manner akin to checking physical vital signs. Patients can then be stratified based on those risks. 


Collaboration Key in a Value-Based Care Model


We must create appropriate, individualized plans of care and they must be grounded in best-practice medicine. An interdisciplinary team needs to develop an applicable approach that involves the patient and include mitigation steps for non-medical issues obstructing a patient’s journey toward health and well-being.  In order to execute the plan, we need to do it in a communicative and collaborative manner, supporting and guiding the patient through an appropriate application of relationship and technology.


In this upcoming series of blog posts, I’ll address each of the pillars of Population Health Management and Value-based Care — risk stratification, plan of care and longitudinal support. The final installment will look at a specific example of a tool that aids in the support, communication and coordination needed to effectively carry out a plan of care.


Read the Entire Series on Creating a Value-Based Care Model


Risk Stratification for Population Health Management Teams

Valuing Patients with an Individual Plan of Care

Building Better Relationships Key to Value-Based Healthcare Delivery

Value-Based Care Software to Support Your Population Health Strategy



Dr. Hart is a Board-Certified Family Medicine physician with over 20 years of clinical patient care experience creating a foundation for his over 11 years of experience as a healthcare executive.  He has practiced as a rural Family Physician, ED Physician and Hospitalist. Administrative experience includes CMO of payers and executive positions in hospital health systems, building and running value-based systems. Currently, Dr. Hart serves as the Medical Director of Value-based Programs for Millennium Physician Group in Florida. Visit his website:

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Topics: Hospitals, Articles, Featured, ACOs
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