Framework for Financial Outcome Measurement in Value-Based Care

This white paper presents a framework for accurately measuring financial outcomes in value-based care (VBC) arrangements, specifically focusing on the prevention of diabetic foot ulcers (DFUs). The document outlines the challenges associated with measuring outcomes in VBC, emphasizing the importance of accurate measurement for successful implementation. It discusses the complexities involved in measuring financial performance, particularly for high-risk populations, and the necessity of using historical or concurrent controls for accurate predictions. The paper highlights the significant impact of DFUs on healthcare costs and patient quality of life, noting that many amputations are preventable. It also details the role of technology, such as temperature monitoring programs, in early detection and prevention of DFUs. The authors argue that effective delivery of these technologies requires not only the right tools but also proper patient identification and insurance approval. The paper concludes with recommendations for securing insurer buy-in and improving patient outcomes through targeted interventions.