At Johnson & Johnson, we believe a more value-based healthcare system has tremendous potential to improve the health of populations, increase access to care, and limit costs. The transition to a value-based healthcare system will require many stakeholders to work together – healthcare companies, payers, providers and policy makers – creating an ecosystem of care. Working with our partners, we have implemented a range of innovative value-based contracts, from agreements based on achieving specific clinical endpoints, to ones linked to offsetting other healthcare expenditures. While we are still at the beginning of the path toward value-based care (VBC) delivery, we are optimistic that with our deep expertise and connections across the healthcare continuum, Johnson & Johnson can help health systems succeed with VBC models.
As part of our commitment to VBC, Johnson & Johnson was the first healthcare manufacturer to join the Learning and Action Network, a network of healthcare partners working together under the direction of the U.S. Department of Health and Human Services to accelerate our healthcare system’s shift to alternative payment models that reward value rather than volume. We have made several commitments to expand our involvement in VBC, beginning with our own employees and extending out to partner with stakeholders to advance VBC throughout the United States. We are also pleased to support a multi-stakeholder effort established by Value Based Insurance Design Health that is working to identify, measure, and eliminate low-value healthcare services.
An example of VBC in action is our global CareAdvantage initiative in the Medical Devices segment, launched at the beginning of 2017. CareAdvantage is one tool we are using to help healthcare providers and health systems navigate VBC, adjusted to meet the different needs of respective regional care systems. Data-driven, holistic and grounded in Johnson & Johnson’s deep expertise and insights, CareAdvantage works to help providers and health systems assess and then implement value-based action plans along the care pathway, while optimizing patient care. CareAdvantage is available in the Africa region, Asia Pacific, Europe, Latin America, Middle East, and United States.
Results from a real-world evidence study of CareAdvantage—in a partnership between Johnson & Johnson Medical Devices Companies and University of California, San Francisco Health—are already demonstrating shorter inpatient stays, significant time savings and operating-room efficiencies that together translate to an estimated cost savings of more than $262,000 annually.