Value Management in Healthcare: Why the System Is Breaking—and What We Can Actually Do About It

Healthcare isn’t just strained—it’s on a collision course.

The OECD projects global healthcare spending could double to 14% of GDP by 2060, driven by four forces we can’t ignore:

an aging population, rising chronic disease, increased affluence, and patients who are more informed and expect better.

Back in 2006, Michael Porter and Elizabeth Teisberg reframed the entire conversation with Redefining Health Care, arguing that the industry’s root problems stem from misaligned incentives and fragmented care. Their prescription was simple and powerful: organize healthcare around value for the patient.

Nearly two decades later, the urgency has only intensified.

The second edition of Value Management in Healthcare—my updated, practical guide to putting value-based care into action—tackles two realities shaping the future of modern healthcare:

1. Artificial Intelligence is a force multiplier.

AI can accelerate personalized medicine, predict outcomes with unprecedented accuracy, and reshape population health management. But only if organizations know how to integrate it into a value-driven model—responsibly and strategically.

2. Value-based care still isn’t scaling—and it’s not for lack of promise.

Most organizations struggle not because the model is flawed, but because the transition away from fee-for-service is complex:

• messy data

• lack of interoperability

• no standardization of outcomes

• and change-management failures

These are solvable problems—with a structured process.

That’s what this book delivers.

Value Management in Healthcare takes Porter’s value equation—Value = Outcomes ÷ Cost—and operationalizes it.

You get the frameworks, the calculations, the case studies, and the step-by-step pathway leaders can use to redesign care delivery around measurable improvement.

If you’re a healthcare executive, clinical leader, or policymaker trying to move from theory to execution, this book gives you the practical blueprint.

Because value isn’t a slogan.

It’s a discipline.

And it’s time healthcare treated it like one.