Home Perspectives & Insights Solving the Healthcare Value Equation – Part 1

Solving the Healthcare Value Equation – Part 1

Perspectives & Insights · March 1, 2022 · Comments off

May 20, 2022
Copyright 2022 – Don Gerdts. All rights reserved.

Part 1:  Creating a Framework

Value-Based Care (VBC) is la phrase du jour to be sure.  Now 20+ years in development, value-based care (VBC) is the goal of improving the quality of and satisfaction with healthcare while lowering overall cost.  Possibly due to the increasing effectiveness of policy implementation related to CMS’s Triple Aim, many stakeholders in the healthcare ecosystem pushing to focus on the result of healthcare over the volume of services provided or, at least, talking about that noble intention.

I believe that signs indicate that we are approaching curves and a fork ahead in the road to VBC, and I’d like to propose an equation to identify the key variables of value-based care:

Value = E[Q+S] / [∑(P*U)] or Value = Effectiveness [Quality + Satisfaction] / Total Cost.

An equation to measure healthcare value
An equation to measure healthcare value

In subsequent posts, I will use the key variables in this equation to provide a framework for spurring discussion about the sometimes-opposing forces, challenges, and opportunities for innovation in value-based care.

TripleAim Strategy Advisors can help stakeholders in the healthcare ecosystem as a consultant or advisor to provide insights and develop strategies to advance equitable, value-based care.

Contact us to discuss this important topic or see additional ways we can help!

Don

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