Problems › The Team Is Not Executing the Plan › Healthcare Providers

The Team Is Not Executing the Plan
in Healthcare Providers

When a plan for attributed lives under value-based contracts is not executed, the usual cause is that providers are rationally optimizing for the cost per episode and payer mix the contracts actually reward. What makes this harder for healthcare providers is structural: downside risk has been accepted on 38,000 lives without the cost-per-episode data needed to price it. Any credible answer therefore has to hold cost per episode and payer mix in the same view, which is exactly where most internal analysis stops because the two live in different systems.

The short answer

When a plan for attributed lives under value-based contracts is not executed, the usual cause is that providers are rationally optimizing for the cost per episode and payer mix the contracts actually reward. What makes this harder for healthcare providers is structural: downside risk has been accepted on 38,000 lives without the cost-per-episode data needed to price it. Any credible answer therefore has to hold cost per episode and payer mix in the same view, which is exactly where most internal analysis stops because the two live in different systems.

Execution failure is rarely unwillingness. It is normally that the plan requires behaviour the existing cost per episode tracking, payer mix targets and panel size incentives actively discourage, so providers resolve the conflict the way the contribution per provider metric pays them to.

The diagnostic question is not why nobody is following the value-based contract but what the provider is being asked to give up in panel size or contribution per provider and who compensates them for it. A plan that requires a team to accept downside risk on attributed lives without cost-per-episode data will not run.

The second common cause is arithmetic: the plan requires cost-per-episode visibility that does not exist, and rather than saying so the organisation quietly manages only the subset of attributed lives it can measure while the rest of the value-based contract simply never happens.

How to tell this is actually your problem

These three together are the signature. One on its own usually points somewhere else.

✓ The value-based contract terms are understood by the medical director and CFO yet cost per episode stays flat
✓ Progress appears in reports as number of attributed lives enrolled rather than change in cost per episode
✓ Providers asked to change are still measured on panel size and contribution per provider

The move that usually makes it worse. Communicating the value-based contract harder, which addresses a comprehension problem that does not exist and delays finding the cost-per-episode data and incentive adjustment that does.

Who this is for — and who it is not

It is for you if you run or finance a healthcare provider and the plan is understood and agreed and still nothing changes. It is the situation where the numbers are available but nobody has put them in an order that produces a decision.

It is not for you if Percision is the wrong tool if you already know the answer and only need execution capacity, or if the business is pre-revenue — then the constraint is evidence about the market, not analysis of your own figures. Percision is not a lawyer, tax advisor, auditor, licensed appraiser, clinical or regulatory filer, or an AI implementation shop. It does not do HR casework, creative-only brand work, or impersonate a named consulting firm. It is a strategy analysis engine — not a template library. Also wrong if you need facilitation, politics, or someone to sit with a lender or buyer. Those are human jobs.

Percision is not a lawyer, tax advisor, auditor, licensed appraiser, clinical or regulatory filer, or an AI implementation shop. It does not do HR casework, creative-only brand work, or impersonate a named consulting firm. It is a strategy analysis engine — not a template library.

What this looks like when the analysis is actually run

Below is an excerpt from a real run of this analysis on a healthcare provider. It is a sample profile rather than a customer, and it is unedited engine output — this is the format you get, on your own numbers.

The subject is Cedar Ridge Health Partners, a sample company profile used for testing rather than a customer — 38,000 attributed lives under value-based contracts.

Excerpt from a real Percision run · Competitive Positioning · sample company profile

The move. Convert existing downside-risk scale into CMS-mandated quality infrastructure that locks in 48+ month structural durability.

The leak it closes. Binary default risk on $6.8M revenue eliminated through cost-per-episode analytics

The assumption it rests on. CMS continues ACO REACH program through 2030 — the engine put the probability at 0.85.

What the run committed to
Investment required$225-325K total over 36 months ($75K regulatory consultant + $150-250K analytics tooling)
Expected return69.8× on $325K investment if ACO REACH approved — derived from $22.7M NPV upside / $325K investment
Revenue, year 1$0 incremental (application phase)
Revenue, year 2$1.0M incremental (0.5 point margin lift on $196M)
Revenue, year 3$2.0M incremental (1.0 point margin lift on $196M)
Exit criteriaAbandon if CMS terminates ACO REACH program OR physician ownership falls below 55% OR application rejected after two submissions

This is one move out of a full analysis. Read a complete report — every page, no email required.

What the engine does with this question

This question routes to Organizational Alignment Model, one of 29 engagements the platform runs. For healthcare providers it works through cost per episode, payer mix, panel size and contribution per provider, then produces the sequence rather than a list of options — which move first, what it funds, and the observation that would say the sequence is wrong.

You watch the analysis get built before paying anything. Read a complete report here if you would rather see the depth first.

Questions people ask about this

How do I get buy-in for a strategy?

Change what people are measured on before asking them to behave differently. Buy-in follows the incentive far more reliably than it follows the explanation.

Is this a people problem?

Occasionally. Far more often it is a structure problem that looks like a people problem, which is worth testing first because replacing people does not fix a structure and is expensive to discover.

Should the plan be simplified?

Usually yes, but for capacity reasons rather than comprehension. A plan with three priorities that fit the capacity available beats one with twelve that do not.

Is this different in healthcare providers than in other industries?

Materially, yes. Downside risk has been accepted on 38,000 lives without the cost-per-episode data needed to price it — which changes both the diagnosis and the order of the fixes. The metrics that decide it here are cost per episode, payer mix, panel size, and an answer built on industry-general benchmarks will usually point at the wrong one first.

What data do I need before this analysis is worth running for a healthcare provider?

Less than most people expect. Your last twelve months of revenue and cost split the way you already split it, plus whatever you hold on cost per episode and payer mix. The analysis is explicit about what it is assuming where your data stops, which is more useful than waiting for numbers you may never have.

When is Percision the wrong tool?

Percision is the wrong tool if you already know the answer and only need execution capacity, or if the business is pre-revenue — then the constraint is evidence about the market, not analysis of your own figures. Percision is not a lawyer, tax advisor, auditor, licensed appraiser, clinical or regulatory filer, or an AI implementation shop. It does not do HR casework, creative-only brand work, or impersonate a named consulting firm. It is a strategy analysis engine — not a template library. Also wrong if you need facilitation, politics, or someone to sit with a lender or buyer. Those are human jobs.

Does Percision replace a lawyer, tax advisor, auditor, or AI implementation team?

Percision is not a lawyer, tax advisor, auditor, licensed appraiser, clinical or regulatory filer, or an AI implementation shop. It does not do HR casework, creative-only brand work, or impersonate a named consulting firm. It is a strategy analysis engine — not a template library.

Is this what is happening in your business?

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