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Virta Health Puts 100% of Fees at Risk with New Value-based Care Model

by Jasmine Pennic 11/14/2018 Leave a Comment

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 Virta Health Puts 100% of Fees at Risk with New Value-based Care Model

Virta Health unveils new value-based care model that makes every dollar performance-based, with the majority tied to health outcomes for diabetes reversal.

Virta Health, a San Francisco, CA-based provider of a clinically-proven treatment to safely and sustainably reverse type 2 diabetes without the use of medications or surgery, today announced a unique value-based care model that puts 100% of its fees at risk. The new model ensures that every dollar is tied performance-based benchmarks to reverse diabetes. Virta saves nearly $10,000 per patient in medical expenses over the first 24 months while tying treatment fees to successful outcomes.

Providers Slowly Moving Towards Value-based Care

Healthcare has moved increasingly towards value-based care, but change has been slow, and at-risk components are typically small without always being tied to improved health. Virta’s model is unique in that every dollar is earned by meeting performance benchmarks, and the majority of payment is tied to health outcomes.

Traditional fee for service models is insufficient with Virta’s treatment approach, which combines individualized medication nutrition therapy with a new treatment model called continuous remote care. Continuous remote care replaces infrequent and in-person visits every 3-6 months, with near-real-time access to physicians and health coaches.

“With a new treatment comes the need for a new business model,” said Sami Inkinen, Virta co-founder CEO. “We needed something simple that aligns our incentives with those of patients and payers and is reflective of the transformational outcomes we are delivering daily.”

Virta Health Value-based Care Model Overview

Under Virta’s new structure, employers and health plans pay an enrollment fee only after patients meet 30-day engagement criteria. Then, payers make only a single yearly payment that is 100% tied to improved health, specifically glycemic control and medication reductions. If health outcomes aren’t met, employers and health plans don’t pay.

This type of payment model is made possible through Virta’s peer-reviewed outcomes, which demonstrated diabetes reversal in 60% of patients completing 1 year of the Virta Treatment. Of patients taking insulin 94% either reduce or eliminate usage. The Virta Treatment also has demonstrated improvement in 22 of 26 cardiovascular disease risk factors. Virta estimates savings of $9600 of the first 24 months for payers.

 

“With Virta, I have avoided expensive bariatric surgery, and have lost over 70 pounds now,” said Virta patient Lori. “I am no longer on any diabetic medications, and I feel better than I ever have before.”

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Tagged With: Value-Based Care, Value-Based Payment Models, Virta Health

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