Giving Compass' Take:

• This RevCycle Intelligence post explores how health care is moving away from fee-for-service, but why value-based purchasing success hinges on addressing social determinants of health.

• Some of these determinants include food, housing, social relationships, transportation and education. What role can nonprofits play in developing a holistic view of health in these areas?

• Here are some policy recommendations to address social determinants of health.

We are quickly heading to the value-based purchasing tipping point, according to the Vice President of Network Management at Health Partners Plans in Pennsylvania.

“While adoption rates are still relatively low in some regions of the country, almost all health plans and providers are doing work in this space and the percentage of spending in the value-based care space will continue to increase,” seasoned commercial and government health insurance plan executive Brian Donovan recently told RevCycleIntelligence.com.

“I can see it approaching maybe 50 percent for most health plans within the next five years if we consider their entire book of business.”

The transition away from fee-for-service has been a long journey. While some health systems and plans have been engaging in types of value-based contracts for decades, the Affordable Care Act (ACA) really got the ball rolling for most providers through programs like the Medicare Shared Savings Program and hospital pay-for-performance initiatives.

President Obama signed the ACA into law on March 23, 2010. However, value-based purchasing contracts are still in their infancy at most provider organizations almost nine years later.

Read the full article about value-based health care and social determinants by Jacqueline LaPointe at revcycleintelligence.com.