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Navy Medicine Introduces Value-Based Health Care
Alee Hernandez1, Robert S Kaplan2, Mary L Witkowski3
1Alee Hernandez ( ahernandez@hbs.edu ) is a senior researcher in the Institute for Strategy and Competitiveness, Harvard Business School, in Boston, Massachusetts.
A Navy pilot project using integrated practice units (IPUs) improved patient outcomes for three of four conditions, demonstrating value-based health care
Area of Science:
- Health Services Research
- Military Health
- Value-Based Healthcare
Background:
- The Navy launched a value-based healthcare pilot in 2016 at Naval Hospital Jacksonville.
- The project aimed to assess if integrated practice units (IPUs) and outcome measurement could enhance personnel readiness and reduce healthcare costs.
Purpose of the Study:
- To describe the implementation of a value-based healthcare pilot project.
- To evaluate the impact of IPUs on patient outcomes and costs for specific conditions.
Main Methods:
- Formation of a project leadership structure.
- Selection of four conditions: low back pain, osteoarthritis, diabetes, and high-risk pregnancy.
- Creation of multidisciplinary care teams (IPUs) for each condition and measurement of outcomes and costs over a 12-month period.
Main Results:
- Patient outcomes improved for three of the four selected conditions during the pilot.
- Factors contributing to the project's success were identified.
- Post-pilot, IPUs were consolidated or continued based on performance, with one discontinued.
Conclusions:
- The pilot demonstrated success in improving patient outcomes and offered insights into key success factors for value-based care.
- The model shows potential for broader implementation within the Military Health System and other healthcare settings.
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