November 4, 2022 – More than a decade ago, the United States government began pushing providers toward outcomes-based care models. Other payers followed suit, increasing the pressure for providers to explore alternatives to the fee-for-service models of the past. One area of opportunity quickly revealed itself in the purchasing decisions of medical devices. This provided an opportunity for device manufacturers / suppliers who wished to set themselves apart from the rest by demonstrating the efficacy of their products through improved patient outcomes. Together, suppliers and providers began exploring new contract models that would reflect the improved patient outcomes that payers required.
Ever since, interest in value-based contracting (VBC) programs has continued to grow. A 2018 survey of C-suite and supply chain executives found that 81% would be interested in VBC programs if they were offered by a supplier1. While overall progress toward VBC adoption slowed in 2020 and 2021 due to the pandemic, supply chain challenges, and product shortages, interest remains high. This is particularly the case when VBCs are coupled with technology that can transform cumbersome manual processes into automated, performance-monitoring solutions.
Mondopoint LLC., a Chicago-based startup, has completed the first year of a proof-of-concept implementation with a major New England-based health system. This proof-of-concept has successfully demonstrated that large-scale VBCs can be implemented and automated. In collaboration with the device supplier and the provider, Mondopoint integrated its SaaS platform with the health system’s existing infrastructure to automate performance tracking and rebate submission for over 5,000 patients across two product categories. As a result, the health system of seven acute care hospitals – collectively representing approximately 2,400 total beds – can effectively monitor patient outcomes while the device supplier can demonstrate the value of its medical devices. It’s a win-win.
Read more in October’s issue of Journal of Healthcare Contracting.