Healthcare organizations around the country are preparing for a “Curve 2” world where the value of healthcare services provided is rewarded over the volume. According to Butts and Gursahaney, “As a result, many clinically integrated networks and accountable care organizations have been developed over the past three-to-five years. Many of which have been unsuccessful in generating the results key decision makers were hoping for.”
However there is something that many believe will help. A Hospital Quality Efficiency Program (HQEP) is a contractual agreement between a health system and a CIN/ACO to achieve quality improvements and cost reductions within the inpatient setting and/or employee population. The benefit, according to Butts and Gursahaney, is that it aligns performance and quality improvement efforts between the health system and CIN/ACO, provides a value-based contracting opportunity and creates an immediate shared savings pool to help fund CIN/ACO development costs and the physician incentive pool.