Value Creation In Your Healthcare Business

Hamza Asumah, MD

It is incredibly challenging to provide more value in health care services today. Every health-care system, as well as its administrators, is under social pressure to do so. The adoption of “value-chain” theory, which contends that work is a collection of interconnected activities necessary to produce a product, has resulted in considerable gains in the manufacturing business.

This method might be incredibly valuable for similar jobs in health-care systems. Attempts to widely “apply” the value chain in health-care systems, on the other hand, have been disappointing. As a result, well-meaning executives aiming to boost value have resorted to cost-cutting methods rather than service revolution.

According to Porter and Teisberg, many initiatives have begun to focus their therapy on individuals and their medical difficulties. This needs a concentration on patient value. While focusing on patient value, a few challenges may arise. To begin, healthcare stakeholders’ definitions of value for patients vary widely. Second, not all individuals with the same illness are treated the same manner.

Patients (and their families) anticipate being treated differently based on their choices. Finally, in terms of patient-relevant outcomes, the quality-of-care delivery differs per institution. Because of the mismatch in metrics, comparison is difficult.

Photo by vbhc

The goal of value-based care transformation is to enable the health-care system to bring more value to the lives of patients. Cost-cutting interpretations of value-based health care are insufficient since value is established only when a person’s health outcomes improve. Cost-cutting methods are necessary, yet insufficient: If the underlying goal of value-based health care was cost-cutting, pain medications and compassion would suffice.

In health care, value is measured by the outcomes rather than the number of treatments provided. Consumers are increasingly valuing the quality of the patient-family experience and interpersonal interactions.

Doctors may base the idea of patient value on their knowledge, a better medical lab result, or a well-performed procedure. These metrics are mostly concerned with treatment or intervention. A patient, on the other hand, may place importance on things like the length of waiting lists, how friendly the doctor was, or how delicious the coffee or breakfast tasted.”

Most people would agree that both sets of statistics do not correctly reflect the medical quality of care. Patients’ perspectives: “Despite the fact that the treatment had to be repeated seven times, they were wonderfully polite to me.

Photo by Researchgate

According to health management, value-based healthcare creates a common language for doctors, medical teams, patients, and their families to communicate in. Patient value is defined by an equation in which the numerator is the cost per patient to achieve those results and the denominator is the cost per patient to achieve those outcomes.

The term cost refers to the total cost of a patient’s therapy across a whole cycle, rather than the cost of individual treatments. In order to save money, we should spend more on certain services and less on others.

Learning is important to value-based healthcare. Doctors that are driven to display medical leadership and build a learning culture are important to the success of VBHC implementation. It’s gratifying to discover new ways to add value for patients.

This both motivates doctors and their teams while also saving money. VBHC empowers physicians and their teams to focus on what they do best: providing exceptional patient value via the use of clinically relevant and evidence-based insights.

I entreat you to share your comments in the section below. I will love to know what your thoughts are on value-based healthcare.

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