There are some Frequently Avoidable Mistakes (FAMs) in VBC contracting. Ones that I have witnessed organizations do and one you can avoid doing and be far more effective in your value-based Care program.
But here’s the #1 mistake you can avoid: Avoid working on and negotiating VBC contracts in a silo!
Most organizations participating in VBC programs have a specialized contracting team that negotiates VBC contracts. They’re really good at negotiating contracts, but frequently miss seeking input from other functional team members who will be involved in executing on the contract downstream. For example – care management and population health management teams.
When this occurs, it may result in the organization committing to a contract with
1) improvement targets that are hard to achieve
2) contractual requirements that are not operationally feasible or may cause undue burden on the system
3) or worse. The team is not prepared with the infrastructure and capabilities needed to execute on the contract – leaving the organization in a sorry state.
Bring in representation of key leaders that will be involved in executing the contract downstream during the negotiation process. This not only contributes to an operationally sound contract but also encourages cross-team collaboration and creates buy-in for a successful execution on the VBC program.
Have you experienced this? What steps can you take to ensure input is received?