McDonald’s Can’t Become Fine Dining (Still a Smaller Leap than VBC)
Why Value-Based Care Fails—and What to Do Instead

McDonald’s Can’t Become Fine Dining (Still a Smaller Leap than VBC)

Value-based care isn’t failing because the models are flawed. It’s failing because the organizations implementing them weren’t built to survive the shift.

On this episode of Outcomes, I interviewed David Muhlestein —one of the nation's leading VBC architects, former Chief Research Officer at Leavitt Partners, and a trusted advisor to CMS and Medicaid redesign efforts.

His assessment:

Transformation isn't a contract. It’s a structural realignment.

TL;DR

1. Data is not the bottleneck. Organizational design is. Winning organizations aren’t data-rich—they’re structurally aligned.

Code for success:

✅ Identify internal champions early         
✅ Build protected cohorts around them         
✅ Commit to a 3-year strategy horizon        

2. Segmentation must include people, not just patients. One high-performing health system selected its 100 most VBC-ready physicians, created targeted infrastructure, and scaled after results.

3. Social care programs stall without long-term contract alignment. Short-term pilot cycles cannot sustain 10-year transformation ambitions.

Design social care around multi-year risk contracts and actuarial logic—not grant timelines.

4. Excess data erodes performance. Frontline teams cannot act on overloaded dashboards.


If your organization is serious about leading in value-based transformation:

  • Align transformation incentives across leadership, care delivery, and finance.
  • Use segmentation to de-risk innovation, starting with those most ready to adapt.
  • Rebuild budgeting and contracting timelines to support structural—not episodic—change.
  • Treat data delivery as a leadership function, not a tech function.

“We’re asking for 10-year transformations—but still measuring them on 12-month cycles.”

🎙️Watch on Youtube Here

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If your team is navigating transformation under HR1 or margin pressure, subscribe to The Fundable 15—my weekly brief on what makes social care fundable, scalable, and system-ready.

🔗 Subscribe to The Fundable 15

Christina R. | SDOH Strategist | Outcomes Podcast Host | Margin Defense Architect

Helping healthcare leaders design systems that hold.

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