Establishing a Value Management Office (VMO) for Healthcare Delivery Organizations (HDOs) is a strategic imperative. Reputable organizations such as Cleveland Clinic, MD Anderson and others have already “seen the light” and established their own VMOs. In doing so they have become recognized experts in their fields, and most importantly provided predictable outcomes to patients. As discussed in my upcoming book, a VMO collaborates with clinical quality and financial offices (not just a process point of view) to provide five key deliverables:
1. Defined clinical outcome metrics
2. Defined program outcome metrics
3. Defined IT investment outcome metrics
4. Time Activity-Based Costing for each clinical outcome
5. New payment models ex. bundled payments
In addition to these five key deliverables, the VMO shall produce management dashboards and performance scorecards to contribute to the overall Common Operating Picture – this facilitates both vertical and horizontal alignment with HDO objectives and enables data-driven decision making for leaders. As Harvard SMEs point out the tangible benefits of establishing a VMO are immensurable. Great article: https://hbr.org/2015/12/health-care-providers-need-a-value-management-office