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X marks the spot: Understanding the financial transition from volume to value

Insight Article - December 10, 2019

Benchmarking & Forecasting


Many medical practices, particularly those offering primary care, are rapidly being driven from traditional fee-for-service (FFS), volume-based care to value-based care, which is increasingly associated with reimbursement methods that feature a combination of pay-for-performance, capitation, bundling and other risk arrangements. When a practice is primarily within one or the other reimbursement environments financial risk is more easily managed due to the predominance of one model. However, during the transition from volume-based to value-based care, financial management becomes more difficult to understand and organizational risk increases.

Practice administrators need an uncomplicated conceptual framework for understanding how to keep their organization’s financial performance on track during the inevitable period of transition to value-based care.

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About the Author

Randolph Pirtle
Randolph Pirtle FACMPE
Chief Executive Officer Blue Ridge Medical Center Arrington, Va.

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