• Industry: Healthcare
  • Type: White paper
  • Date: 28/09/2012

Contracting value: Shifting paradigms 

‘Value’ is a key term in the current crisis in healthcare globally, emphasising that our problems in containing costs are just as crucial to tackle as our problems in capturing and ensuring quality.
Contracting value: Shifting paradigms cover
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Key insights

  • The failures of the most prevalent payment systems range from fee-for-service and block grants to the current attempts to pay for performance.
  • Quality and costs. Healthcare systems are facing pressure to cope with rapidly ageing populations, a higher prevalence of chronic diseases and ever rising expectations.
  • The quest for the Holy Grail. Policymakers and payers globally are rethinking payment mechanisms to instead reward value: high-quality, efficient care.
  • The building blocks that make it work. What would a payment system that is built upon realising value actually look like? How can payers pay for outcomes rather than for inputs?
  • Contracting value: where value is created. With these building blocks in place, it is now possible for the purchaser to contract the delivery of a set of outcomes for a given population.
  • Conclusion: Existing payment systems are by no means the only culprit standing in the way of sustainable, high quality healthcare systems.


Further information

KPMG's global website contains an interactive version of this report.


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KPMG helps the healthcare, ageing and human services sector to manage risk, implement effective controls and improve performance.