Blueprint for VBC: Balancing risk and readiness in value-based models

As more organizations enter alternative payment models, Jason Jobes, senior vice president of Solutions at Norwood, says many underestimate what it takes to succeed financially under value-based care (VBC).

“From a financial risk perspective, frankly, the winners don’t take enough risk,” Jobes says. “Organizations that take risk and engage in downside risk actually outperform those that don’t take enough financial risk.”

He cautions, however, that practices often fail by skipping the foundational investments needed for success. “They think it’s just something they can do and continue how they operate now — but it does take a fundamental shift.”

The biggest challenge, Jobes adds, comes when practices move too fast without proper alignment. “If half their contracts are in fee-for-service and half are in value-based care, the clinicians don’t know what to do — and administratively, it’s very complex.”