Spring 2018 Generations

GENERATIONS – Journal of the American Society on Aging

Teaching CBOs to Develop Business Strategies By Erin C. Westphal

The SCAN Foundation’s Linkage Lab Academy has helped CBOs serve thousands of older adults and adults with disabilities, while generating millions in revenue.

S ince the 2010 passage of the Affordable Care Act (ACA), healthcare payments have been transitioning from fee-for-service to fee-for- outcomes. As such, healthcare entities (e.g., health plans, Medicare Advantage, Accountable Care Organizations [ACO], Special Needs Plans [SNP], and hospitals) and their contracted partners (e.g., physician and medical groups, home health, and skilled nursing and rehabilitation facilities) must move to a person-centered approach to care, in which an individual’s goals drive the care plan. This has translated to an increased focus on care coordination and transitions and the need for healthcare entities to weigh the value of building new programs to provide services, or buying ser- vices through expanding their contracted net- work to include organizations that provide home- and community-based services. Healthcare entities are still testing approaches and care models to identify who would most ben- eft from the services (targeting), which mix of

services would deliver improved outcomes (qual- ity of life) for the individual, and which are sus- tainable (providing return on investment). What is known is that care coordination and transition programs, particularly at times of medical crisis, are essential. ‘Working with healthcare entities requires CBOs to re-imagine how they provide services.’ This shift in payment mechanisms and approaches to providing care has presented opportunities as well as challenges for commu- nity-based organizations (CBO). Working with healthcare entities requires CBOs to re-imagine how they provide services, moving away from providing services based on funding for specifc programs toward providing programs and ser- vices that respond to the needs of the healthcare

abstract For community-based organizations (CBO) and the healthcare sector, the passage of the Affordable Care Act created new opportunities by shifting the focus from fee-for-service to fee-for- outcomes. To maximize these opportunities, CBOs need to develop business strategies that leverage their strengths. Aligning core competencies, focusing on areas for improvement, and being willing to evolve within the environment can not only sustain organizations, but also allow them to thrive. | key words : Affordable Care Act, value-based care, community-based organizations, Linkage Lab Academy, person-centered care, care coordination, transitions

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