Durham, N.C.-based EmergeOrtho and Charlotte, N.C.-based OrthoCarolina recently struck a new value-based care-focused partnership to promote a new payment model for their services, according to a Sept. 11 report from Business North Carolina.
Their new creation, Health Innovation Value Enterprise, or HIVE of the Carolinas, is intended to reduce healthcare costs and improve care access for patients in the state.
Medical care traditionally has a fee-for-service approach with payers, but several medical groups are starting to advocate for change.
Fee-for-service critics believe that the model encourages unnecessary procedures and tests. Under EmergeOrtho and OrthoCarolina's new model, the group could make up 25 percent of its overall revenue in three to four years, according to OrthoCarolina CEO Bruce Cohen, MD.
HIVE plans to collect data on patient outcomes and financial results under the new payment model and then use the information to better coordinate care for employers and insurers.
Together, the two practices care for nearly half of the state's patients seeking orthopedic care, according to the report.
"Value-based care ties the amount healthcare providers earn for their services to the results they deliver for their patients, such as the quality, equity and cost of care," Allison Farmer, CEO of EmergeOrtho, said in a LinkedIn post.