The VBP Blog 2024 Recap
Exploring the Role of Managed Care and VBP Models in Behavioral Health, I/DD, and Home Health
THE VBP Blog
January 9, 2025 – As 2024 comes to a close and we step into 2025, we want to take a moment to revisit the major value-based payment (VBP) topics we explored throughout the year. From innovations in home health care to the growing adoption of managed care models, the healthcare industry has continued to evolve in transformative ways. We also discussed how artificial intelligence (AI) is reshaping healthcare, and examined how value-based payment models are enhancing care in behavioral health, home health, and home care.
This year’s blogs highlighted the challenges, opportunities, and advancements shaping healthcare. In this recap, we’ll reflect on these key themes, sharing insights into how they’ve impacted patients, providers, and the broader system. Let’s look back at 2024 and the progress it brought to healthcare innovation.
Home Health Trends for 2024
In 2024, we kicked off the year with a blog series on home health trends that highlighted the changes and challenges shaping the industry. As home health care continues to grow in importance, we explored key topics that providers, patients, and policymakers navigated throughout the year, including:
- Continued Growth for Home-Based Services: The demand for home-based services like home health care and home care is going to continue to grow. It will be driven by an aging population, preference for aging and receiving care in home, and advancements in home care technologies.
- Labor Shortages Persisting: Ongoing labor shortages are going to continue challenging agencies. This will require innovative strategies to recruit caregivers and nurses, as well as prompting a greater integration of technology solutions like telehealth and automated systems.
- Inflation Impacting Costs: As inflation persists, agencies will face increased operational expenses, while consumers may see higher private pay costs. This economic pressure might trigger more innovation or mergers and acquisitions
- Continued Regulatory and Reimbursement Challenges: Navigating the complex landscape of regulations and reimbursement will remain a significant challenge, requiring agencies to stay agile and informed to manage potential impacts on service delivery and financial health. This includes the recently finalized 2024 cuts to Medicare home care reimbursement rates.
- Diversification and Whole-Person Care: Agencies will increasingly recognize the need to diversify services and focus on whole-person care. This can lead to integrating enhanced care coordination to address the comprehensive needs of patients more effectively.
- Patient Empowerment: Trends toward patient empowerment will gain momentum. In 2024, more individuals will take an active role in their care, aided by accessible information, technology, and supportive healthcare policies.
- Increased Cultural Competency: As the population becomes more diverse, there will be a heightened emphasis on cultural competency within home health and home care services. Agencies will need to adapt training to ensure care is respectful, sensitive, and tailored to the cultural needs of each patient.
The AI Revolution Series
In 2024, we also launched our “AI Revolution Series” that explored the potential of artificial intelligence (AI) within the healthcare sector, highlighting both its promising applications and the challenges it presents. Our topics included:
- Introduction to AI Applications in Healthcare: There are two types of AI: generative and prescriptive. While both have their uses in healthcare, prescriptive AI has already been adapted into many technologies and begun to change how care is delivered and managed.
- Addressing Concerns of AI Implementation in Healthcare: There are concerns in implementing AI in healthcare, including the issue of privacy and data security because AI relies heavily on vast amounts of personal health information for analysis.
- How AI Can Improve Quality Care in Home Health and Home Care: AI is contributing to the home health and home care sectors. By using data, AI can identify patterns and predict health deteriorations before they become critical, increase the safety of those receiving care in the home, and provide daily support like medication reminders and dietary restriction reminders.
- The Benefits of Using AI in Home Health and Home Care: There are many benefits of using AI in the home health and home care sectors, including the creation of more personalized care plans, the ability to increase safety and independence for consumers.
- The Benefits of AI in Behavioral Health: By leveraging AI, healthcare providers can offer more personalized, efficient, and accessible care to those struggling with behavioral health conditions such as anxiety, depression, and substance use disorders (SUDS), as well as analyzing patterns in a patient’s behavior and medical history to identify early signs of behavioral health issues.
- Addressing Health Related Social Needs with AI: AI can also transform the way we find and tackle the underlying social factors that significantly impact health outcomes, also known as social determinants of health (SDOH) and health related social needs (HRSN).
- How AI and Value-Based Payments Can Increase Quality of Care: The last of our blogs in the AI series tied everything back to the core of our blog—which as you know, is value-based payments. In theory, AI is a win for plans, providers, and consumers.
Managed Care and Value-Based Payments are Transforming Healthcare
In 2024, we also explored how managed care and value-based payment (VBP) models continued to drive change across the healthcare landscape. These models emphasize care coordination, patient-centered services, and outcomes-based reimbursement, improving healthcare delivery for behavioral health, those with intellectual and developmental disabilities (I/DD), and for the home health and home care industry.
The Medicare Shared Savings Program (MSSP) showcased the success of VBP in achieving meaningful cost savings while maintaining high-quality care. Updates like prepaid shared savings and the Health Equity Benchmark Adjustment (HEBA) have strengthened the program, equipping Accountable Care Organizations (ACOs) to address social determinants of health and expand access to underserved populations.
Behavioral health remained a key focus of innovation in 2024. CMS’s emphasis on integrating behavioral health services into managed care models, such as the Certified Community Behavioral Health Centers (CCBHC) program, and Innovation in Behavioral Health (IBH) model, highlighted the critical role of VBP in improving mental health and substance use care. These models support whole-person care, ensuring patients receive coordinated, comprehensive treatment that addresses both physical and behavioral health needs.
In home health and home care, VBP models have encouraged providers to focus on quality, preventive care, and patient engagement. By rewarding outcomes over service volume, these models help reduce hospitalizations, enhance chronic disease management, and provide more personalized care in patients’ homes. Innovations in technology, such as remote monitoring and telehealth, are increasingly integrated into these care settings, further improving accessibility and efficiency.
Advocates Perspective
As we look back on 2024, we are happy to see the progress made in healthcare through managed care, VBP, and innovative models of care. These advancements have the potential to improve care quality, enhance accessibility, and reduce costs for patients across behavioral health, I/DD, and home health and home care services. We’re thankful that you’ve stuck with us through the year, and as advocates for value-based care, we remain committed to providing insightful, thought-provoking perspectives on the innovations shaping the future of healthcare.
Onward!
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About the Author
Fady Sahhar brings over 30 years of senior management experience working with major multinational companies including Sara Lee, Mobil Oil, Tenneco Packaging, Pactiv, Progressive Insurance, Transitions Optical, PPG Industries and Essilor (France).
His corporate responsibilities included new product development, strategic planning, marketing management, and global sales. He has developed a number of global communications networks, launched products in over 45 countries, and managed a number of branded patented products.
About the Co-Author
Mandy Sahhar provides experience in digital marketing, event management, and business development. Her background has allowed her to get in on the ground floor of marketing efforts including website design, content marketing, and trade show planning. Through her modern approach, she focuses on bringing businesses into the new digital age of marketing through unique approaches and focused content creation. With a passion for communications, she can bring a fresh perspective to an ever-changing industry. Mandy has an MBA with a marketing concentration from Canisius College.