After years of the healthcare trade sticking with the standard fee-for-service mannequin, VillageMD CEO Tim Barry is inspired by the shift he’s seeing to a value-based care mannequin.
“There’s a seamless recognition from physicians on this nation that there’s a greater option to ship care and to do it in a extra built-in, extra related, extra coordinated manner and with an orientation across the affected person,” he mentioned in an interview. “That’s what excites me.”
Barry made these feedback after the value-based firm introduced Thursday that it accomplished its $8.9 billion acquisition of Summit Well being-Metropolis MD. Chicago-based VillageMD, which is majority owned by Walgreens Boots Alliance, is a major care supplier. Summit Well being-CityMD is a supplier of major, specialty and pressing care providers. The mixed entity has greater than 680 clinics and about 20,000 workers caring for 7 million sufferers throughout 26 markets.
He added that he’s noticing extra collaboration in healthcare amongst completely different areas of care.
“It was that we’d simply speak about major care docs on a regular basis … I believe it’s beginning to choose up at an even bigger and greater tempo with different specialties,” he mentioned. “That half excites me as a result of I don’t imagine we ever actually fastened the issues of our healthcare system. [We need to] have docs on this nation who really feel empowered and who really feel accountable and who know that they will work side-by-side with their skilled colleagues to ship one of the best end result for the affected person, and never have to fret about this fee-for-service silo mindset.”
This sort of built-in, value-based care is what Barry is attempting to create with the VillageMD-Summit Well being acquisition. By way of the acquisition, Summit Well being will start to include VillageMD’s value-based care initiatives, whereas VillageMD will add in Summit Well being’s multi specialty care providers, Barry mentioned. A number of the multi specialty providers that Summit presents contains cardiology, gynecology and orthopedics.
“We will carry the best-of-breed capabilities that we’ve at VillageMD round worth and risk-based care supply and convey that to Summit,” he declared. “On the identical time, we are able to carry this built-in, related care mannequin that has been Summit’s legacy and convey that into VillageMD in order that we are able to present extra complete providers to sufferers in a extra built-in, coordinated manner, however all the time tie to worth and risk-based contracts that reward us for delivering higher outcomes at a decrease value.”
The way forward for healthcare isn’t solely vivid, nonetheless. One factor that considerations Barry is the potential applied sciences might have in making a extra siloed system. Whereas there are plenty of advantages to digital well being by way of entry, it has additionally led to plenty of level options.
“The healthcare system has all these completely different fiefdoms and if all we’re doing is including extra fiefdoms, now we’re simply including them digitally versus bodily, we run extra of a threat of fragmenting the system … If you find yourself seeing three docs in a bodily setting and then you definately’ve bought three different firms attempting to promote you one thing digitally and also you’re engaged with them, they is probably not related and coordinated,” he mentioned. “I believe we run the danger of frankly, solely making folks extra confused, extra annoyed, sicker after which in the end costing the healthcare system extra.”
He added that expertise wants to offer a connection between the affected person and their major care doctor.
“We have to guarantee that these new innovations, these new improvements, are fascinated with the way it coordinates care extra with the affected person and their physician than it does to additional separate folks from the plan of care they could have with their physician,” Barry mentioned.
Photograph credit score: Walgreens