Value-based health care

Let’s talk value with Michael Porter

How do we define value in health care? Michael Porter, well known for his theories on economics, business strategy and social causes, applies modern management principles to give us six steps we can follow to ‘fix’ the health care system.

Sage advice from Michael Porter on value-based health care delivery.

CHOICE & COMPETITION

for patients are powerful forces to encourage continuous improvement in value and restructuring of care.

Key points:

VALUE

= PATIENT HEALTH OUTCOMES PER DOLLAR SPENT

POSITIVE-SUM COMPETITION

on value for patients is fundamental to health care reform in every country.

“The fundamental goal of economic policy is to enhance competitiveness, which is reflected in the productivity with which a nation or region utilizes its people, capital, and natural endowments to produce valuable goods and services.”

— Michael Porter Clusters and Economic Policy White Paper, October 2009

The challenge is, that whilst we may have competition in health care today, we are competing on the wrong metric (cost instead of value).