In September, Pennsylvania’s Department of Human Services Secretary Ted Dallas announced significant steps to improve care in that state’s Medicaid program, including a new goal that all state-contracted managed care organizations increase the number of value-based contracts they have with providers to 30 percent within the next three years. Dallas explains:
If you pay for services, you will get services. If you pay for outcomes, you will get outcomes. When awarded, the contracts will require the managed care organizations (MCOs) to increase the amount of money they spend on contracts that reward value, care coordination, and better health outcomes rather than simply paying for services as they are provided. The result will be a system that focuses more on the patient as a whole and provides higher quality care to those in the Medicaid system.