VIable
HLCCompendium
HLCCompendium
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NDHI<br />
NAT IONAL DIALOGUE FOR<br />
Healthcare Innovation<br />
Value-Based Healthcare<br />
Organization Overview<br />
• Medtronic is the world’s largest medical technology<br />
company, offering a broad range of therapies and<br />
health care solutions to improve the lives of patients<br />
around the globe. Medtronic’s therapies now serve<br />
two new patients every second of the day<br />
• Medtronic is focused on creating a sustainable value-based<br />
healthcare strategy, consistent with the<br />
Medtronic Mission to alleviate pain, restore health<br />
and extend life for more patients around the world<br />
Background<br />
Healthcare leaders are adopting new value-based<br />
payment and delivery systems aimed at curbing costs<br />
and improving quality. The Department of Health and<br />
Human Services aims to tie 50% of Medicare fee-forservice<br />
payments to value through alternative payment<br />
models by 2018, and is already more than halfway to<br />
that goal.<br />
As these value-based healthcare (VBHC) approaches<br />
are implemented, they will increasingly determine<br />
how technology and services are utilized in the future.<br />
Medtronic is committed to being a leader in this transformation<br />
of healthcare. The company’s technologies,<br />
and the data and insights that these products generate,<br />
can be utilized to help integrate and connect patient<br />
care across disease state progressions or across care<br />
continuums – a vital step in delivering on the promise<br />
of meaningful outcomes and lower costs.<br />
Medtronic is excited about the opportunity to participate<br />
in the development of value-based healthcare collaborations,<br />
sharing direct accountability for healthcare<br />
costs and patient outcomes in its business models.<br />
However, these agreements must reflect several key<br />
principles, including:<br />
• Appropriate patient risk-stratification<br />
“<br />
• Well-defined inclusion and exclusion criteria for<br />
bundled services<br />
• Open and transparent data sharing for the projection<br />
and calculation of costs and outcomes<br />
Toward these goals, Medtronic has adopted a comprehensive<br />
framework, through which the company<br />
develops innovative new business models and partnerships<br />
that involve shared accountability.<br />
Collaboration Details<br />
The Medtronic 7-Step Value-Based Healthcare Framework<br />
was established to provide a common language<br />
and approach to advance care delivery built on three<br />
premises:<br />
1. Accountability for outcomes<br />
“We are actively partnering<br />
to drive meaningful dialogue<br />
from thought-leaders across<br />
healthcare about how we can<br />
transform the incentives in<br />
healthcare today to focus on<br />
outcomes.”<br />
“<br />
Omar Ishrak<br />
Chairman and CEO, Medtronic<br />
2. Rigorous understanding of economic value from<br />
the stakeholder perspective<br />
3. Appropriately-defined time horizons to be accountable<br />
for value<br />
An Initiative of the<br />
99 |<br />
Value-Based Healthcare