Hospital-Community Collaboration in the Value-Based Care Environment

Our own Adam Cole and Patrick Pilch recently joined our friends at New York Nonprofit Media for a podcast on the healthcare industry’s transformation and the benefits of collaboration between hospitals and community service care providers.

BDO’s recent Nonprofit Standards survey revealed that the transition to value-based payment could be hurting the finances of health and human services organizations (HHS). Of HHS organizations surveyed, 32 percent reported a net loss last year, compared to 22 percent of nonprofits overall. Funders of HHS organizations are also looking to see if their dollars are having a positive impact. Three-quarters of HHS organizations surveyed said 75 percent or more of their funders required more information on funding outcomes than last year.

Partnerships between community services organizations and traditional healthcare providers, Pilch and Cole explained, can mitigate costs, reduce hospital readmissions and avoidable emergency room visits, and improve quality of care—key outcomes as payment evolves toward value-based models.

“Hospitals are realizing that there are certain things that they’re really good at and that’s taking care of people that are acutely ill, need intensive care or emerging care, and that to partner with those right providers in the community, that’s where I think where the value is struck,” said Pilch. 

Cole added that skilled nursing, long-term care providers, social services agencies and behavioral healthcare providers are often better equipped to provide expertise individualized care, often at a lower cost.

Today, there’s greater understanding of the relationship between hospital care and community services, allowing for increased coordination. Staten Island PPS, a BDO client, has achieved notable success and strong outcomes by working with behavioral health providers, hospitals and long-term care providers to reduce avoidable inpatient admissions and avoidable ER visits by 25 percent.

For nonprofit healthcare providers looking to identify where they can partner, Pilch adds, “If you understand…what you can do very well and how you can make an impact on that particular PPS [Performing Provider System], you have an opportunity to partner.”

For more insights, listen to the full podcast or go to New York Nonprofit Media.