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Value = quality + cost

P H Arford1, C A Allred

  • 1Graduate Program, College of Nursing, Medical University of South Carolina, Charleston, USA.

The Journal of Nursing Administration
|September 1, 1995
PubMed
Summary
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A new quality index offers a quantifiable way to assess patient care outcomes and costs. This tool helps healthcare consumers compare the value of different services based on quality and price.

Area of Science:

  • Healthcare Management
  • Health Economics
  • Quality Improvement

Background:

  • Evaluating healthcare services often involves complex trade-offs between quality of care and associated costs.
  • Existing methods for comparing healthcare value can be subjective and lack standardization.

Purpose of the Study:

  • To develop a quantifiable quality index for synthesizing patient-care outcomes and service costs.
  • To provide a tool for healthcare purchasers to assess and compare the value of alternative healthcare services.

Main Methods:

  • Synthesizing selected patient-care outcomes.
  • Incorporating service cost data.
  • Developing a composite quality index.

Main Results:

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  • The developed quality index allows for a quantifiable synthesis of care outcomes and costs.
  • The index provides a framework for judging the cost-quality relationship of healthcare services.

Conclusions:

  • The quality index enables objective comparison of healthcare service value.
  • This tool empowers purchasers to make informed decisions based on both quality and cost.