The Healthcare Breakdown No. 021 - Breaking down the Private Equity party in healthcare gives us an interesting insight into the growing presence of private equity in the healthcare industry. This infiltration is having significant impacts on both patients and clinicians alike. However, it also raises questions about the potential nefarious aspects of this construct.

Ben H.

Ben H.

Dec 28, 20233 min read

0

The Healthcare Breakdown No. 021 - Breaking down the Private Equity party in healthcare gives us an interesting insight into the growing presence of private equity in the healthcare industry. This infiltration is having significant impacts on both patients and clinicians alike. However, it also raises questions about the potential nefarious aspects of this construct.

At the same time, we are grappling with the challenge of measuring success in value-based purchasing (VBP) programs in healthcare. Over the past decade, there has been a lot of experimentation with performance-based payment models, particularly pay-for-performance (P4P) programs. Yet, we still have limited knowledge about the most effective design and implementation of VBP programs to achieve their intended goals. The evidence from previous P4P experiments is mixed, with improvements in performance being modest at best.

One of the main issues with evaluating the impact of P4P programs is the presence of methodological weaknesses in published studies. It becomes difficult to determine whether the VBP intervention had a significant effect above and beyond other changes happening simultaneously to improve quality and control spending. Factors such as investment in quality improvement support, public reporting, and health information technology (HIT) investments and support also play a role in influencing outcomes.

The lack of publicly available information on what constitutes a successful VBP program further complicates matters. Policymakers face challenges in designing VBP programs without a clear understanding of the design features and other factors that facilitate success. This includes considerations of the providers' characteristics, the healthcare market where the VBP program is implemented, and the policy and regulatory environment.

As we navigate these complex issues in the healthcare industry, it is crucial to find actionable advice that can guide us towards meaningful solutions. Here are three key takeaways:

  • 1. Improve research methodology: To gain a better understanding of the impact of VBP programs, it is essential to address the methodological weaknesses prevalent in previous studies. This means designing rigorous research protocols that isolate the effects of VBP interventions from other simultaneous changes.
  • 2. Increase transparency: To foster successful VBP programs, there needs to be better transparency in sharing information about what works and what doesn't. Providers, policymakers, and researchers can collaborate to create a centralized database or platform where successful VBP program designs and outcomes can be shared and studied.
  • 3. Consider alternative uses of funds: While VBP programs aim to improve quality and control spending, it is crucial to evaluate whether the funds allocated to these programs could be better utilized in other areas. Investing in quality improvement support, HIT infrastructure, and other initiatives that directly enhance patient care may yield better results.

In conclusion, the rise of private equity in healthcare and the challenges of measuring success in VBP programs are interconnected issues that demand attention. By addressing the methodological weaknesses in research and promoting transparency and collaboration, we can work towards designing more effective VBP programs. Additionally, considering alternative uses of funds can help maximize the impact of healthcare investments. As we strive for better healthcare outcomes, it is imperative to continuously evaluate and refine our approaches to ensure the best possible care for patients and support for clinicians.

Resource:

  1. "The Healthcare Breakdown No. 021 - Breaking down the Private Equity party in healthcare", https://prestonalexander.substack.com/p/the-healthcare-breakdown-no-021-breaking?utm_source=substack&utm_medium=email (Glasp)
  2. "Measuring Success in Health Care Value-Based Purchasing Programs", https://www.rand.org/pubs/periodicals/health-quarterly/issues/v4/n3/09.html (Glasp)

Want to hatch new ideas?

Glasp AI allows you to hatch new ideas based on your curated content. Let's curate and create with Glasp AI :)