How Value is Determined in Health Care

The ability to assess the value of various health-care activities, processes, and outcomes is critical for decision making and essential to maintain the fidelity of value-based payment mechanisms. However, value is subjective and differs by perspective, context, and situation. Furthermore, the complex nature of health-care delivery and payment complicates efforts to determine the value of individual components or interventions. While a variety of methods exist to quantify and compare value, none have been able to fully capture value for all stakeholders. As an alternative, a general framework that guides how one should define, measure, and interpret value would provide some needed consistency for those looking to assess value while allowing for enough flexibility to address different perspectives, situations, and evaluation goals.