How value- and wellness-based billing is changing strategy for big systems

An industrywide shift to value- and wellness-based billing is having a profound influence on large health systems' strategies, Bisnow Houston reports.

Real estate professionals are seeing hospital systems provide outpatient services in suburban areas to prevent chronic illness and keep patients out of the hospital. For instance, Houston Methodist and MD Anderson Cancer Center are among the large Houston-based organizations expanding into suburbs.

Incentives provided under new value-based reimbursement models encourage hospital systems to cluster outpatient facilities near small, local hospitals, according to experts who spoke to Bisnow. The approach facilitates coordination and communication between physicians.

Historically, hospitals have been the center of the hub-and-spoke model in healthcare real estate. Now, health systems are focusing on ambulatory and outpatient care. But the outpatient movement isn't curbing hospital growth, according to JLL Healthcare Lead Chris Wadley.

"With community-based hospitals adding outpatient expansions in all sectors of the city, we were hoping it would decrease the size of hospitals, but we haven't seen that at all. We're seeing growth in both inpatients and outpatients," Mr. Wadley told Bisnow.

 

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