United States

Value-Based Purchasing Strategies for State Employees

Oct 30, 2014
From the Government Institute

Rising healthcare costs and widespread variation in quality continue to be a growing concern for large employers and other purchasers of healthcare, including state governments.

Like their private-sector counterparts, states are looking for innovative and tested strategies to increase value by obtaining higher-quality care at more affordable prices for their covered populations or health-benefit plan members.

To help shed light on such strategies, the KPMG Government Institute partnered with Catalyst for Payment Reform (CPR), a nationwide nonprofit coalition focused on improving the value of healthcare for large employers and other healthcare purchasers, to reach out to several states to learn about their goals and efforts in this area.

One finding of this research was that value-based purchasing, along with benefit and network design, continue to be critical tactics for driving change, and that states face a number of common challenges and opportunities.

This KPMG Government Institute white paper describes our research and the four strategies that progressive states are employing to reduce costs and improve health care quality.


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Paul Hencoski
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Marc Berg
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Director, Advisory