Nathan Tierney’s approach to storytelling in the realm of health care business is a rare and potent force. In today’s landscape, a transformation is imperative in the health care delivery system, treating it as a team effort in service to patients and ensuring accountability through measurement for improved outcomes. The key lies in quantifying resource costs throughout the entire care cycle. The framework of value-based health care, as elucidated by Tierney, offers a detailed playbook for organizations aspiring to reach these goals. Through meticulous detail and clarity, Tierney explores core concepts and essential metrics necessary to build, sustain, and scale a successful value-based health care organization. The playbook also offers a realistic vision for CEOs aiming to develop their own Value Management Office, making it a must-have resource for executives, clinicians, and patients.
Important Information
Our current healthcare system is broken, with OECD predicting an increase in healthcare costs from 6% to 14% of GDP by 2060.
The causes of this increase include a global aging population, growing affluence, a rise in chronic diseases, and better-informed patients, leading to increased demand for healthcare.
The book “Redefining Health Care: Creating Value-Based Competition on Results” by Michael Porter and Elizabeth Teisberg proposes a patient-centric approach to optimize value for patients.
Professor Porter and Professor Robert Kaplan have championed this approach since 2006, working with leading healthcare organizations to promote value-based concepts.
The book defines the practice of value-based health care as Value Management, exploring Professor Porter’s Value Equation and providing a step-by-step process for calculation.
The Value Realization Framework, based on Professor Kaplan’s Balanced Scorecard approach, translates organizational mission and strategy into performance measures for healthcare delivery.
The book also details the Harvard-endorsed time-driven activity-based costing (TDABC) methodology for defining healthcare delivery organization costs.
Emphasis is placed on establishing a Value Management Office to lead delivery transformation and govern operations.
The book is designed to be accessible for any organization seeking to understand the fundamentals and methodologies of Value Management, especially healthcare delivery organizations aiming to implement value-based healthcare.
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