The Intersection of Value-Based Care and Contract Disputes in the Healthcare Industry

Ben H.

Hatched by Ben H.

Oct 05, 2023

4 min read


The Intersection of Value-Based Care and Contract Disputes in the Healthcare Industry


The healthcare industry is constantly evolving, with organizations seeking innovative ways to improve patient outcomes while reducing costs. Two recent developments highlight the challenges and opportunities within the sector. Firstly, Somatus and Kidney Care Center have expanded their value-based care partnership, aiming to enhance care for patients with chronic kidney disease and end-stage kidney disease across multiple states. Secondly, Bon Secours Mercy Health has filed a lawsuit against Anthem Blue Cross Blue Shield, alleging unpaid and denied claims for patient care. These two scenarios shed light on the complex dynamics between healthcare providers and insurers, as well as the ongoing efforts to optimize the quality and affordability of care.

Expanding Value-Based Care Partnerships:

Somatus, a leading value-based kidney care company, has joined forces with Kidney Care Center to expand their existing collaborative efforts. By establishing a long-term, joint venture arrangement, the organizations aim to improve outcomes for patients with kidney diseases in six states. Additionally, they are participating in Medicare's Comprehensive Kidney Care Contracting program, which further emphasizes their commitment to delivering high-quality, cost-effective care. Through a multidisciplinary local care team, targeted technology and analytics, and direct medical care, Somatus and Kidney Care Center strive to enhance the well-being of their shared patients. With a focus on delivering whole-person, in-home care, their approach aims to increase healthy days spent at home for patients.

Contract Disputes and Reimbursement Challenges:

On the other hand, the lawsuit filed by Bon Secours Mercy Health against Anthem Blue Cross Blue Shield sheds light on the ongoing contract disputes between healthcare providers and insurers. Bon Secours Mercy alleges that Anthem owes the health system nearly $100 million in unpaid, reduced, and denied claims for patient care provided in Virginia. The lawsuit alleges that Anthem's actions are part of a broader strategy to shortchange health systems by delaying, downgrading, and denying treatment charges. Anthem, however, disputes these claims and argues that Bon Secours Mercy's demands for double-digit price increases are unreasonable. This public dispute highlights the increasing number of contract standoffs in the industry, as both providers and insurers navigate the delicate balance between financial sustainability and quality care delivery.

The Impact on Patients:

These contract disputes have real-life implications for patients. When providers and insurers fail to reach an agreement, patients may face higher costs if their preferred health systems are excluded from their health plan's network. The current landscape shows an increase in out-of-network care resulting from contracting stalemates. Patients are caught in the middle of these negotiations, often having to bear the financial burden of seeking care outside of their network. It is crucial for healthcare organizations and insurers to find common ground to ensure accessible and affordable care for all patients.

Actionable Advice:

  • 1. Prioritize Collaboration: Healthcare organizations and insurers should prioritize collaboration to ensure the delivery of high-quality, cost-effective care. By working together, they can establish value-based care partnerships that focus on patient outcomes and cost savings.
  • 2. Transparent Communication: Clear and open communication between providers and insurers is essential to avoid contract disputes. Both parties should engage in meaningful dialogue to address concerns and find mutually beneficial solutions.
  • 3. Embrace Technology and Analytics: Leveraging technology and analytics can help healthcare organizations and insurers identify areas for improvement and optimize resource allocation. By utilizing data-driven insights, they can enhance care delivery and streamline reimbursement processes.


The healthcare industry is a complex ecosystem, where providers and insurers must navigate various challenges to ensure the delivery of high-quality, affordable care. The expansion of value-based care partnerships, as seen with Somatus and Kidney Care Center, demonstrates a commitment to improving patient outcomes while reducing costs. However, contract disputes, as exemplified by the Bon Secours Mercy Health lawsuit against Anthem, highlight the ongoing tensions in the industry. By prioritizing collaboration, transparent communication, and the adoption of technology and analytics, healthcare organizations and insurers can work towards a more sustainable and patient-centered future.

Note: The content provided above is a combination of the given inputs and has been created for demonstration purposes only.

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