Value-Based Care in Long Term Care

Provider-owned networks serve as a critical mechanism for long-term care facilities to transition into value-based care and shared savings models. By aggregating smaller, independent buildings into larger, unified entities, these networks enable providers to achieve the scale necessary to compete with hospital systems and negotiate effectively with payers. This shift moves the industry away from visit-based billing toward outcome-based payments, incentivizing quality improvements such as reduced hospitalizations and enhanced resident safety. Katie Colgan, Executive Director of Integrated Networks for the American Healthcare Association, highlights how proactive network formation allows providers to shape operational models rather than having them imposed by external entities. Successful initiatives in states like Ohio and Indiana demonstrate how these collaborative structures secure resources, such as dedicated nurse practitioners, while ultimately driving better health outcomes for the aging population.