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The quest for value in health care
1RCN Associates, White Plains, NY, USA.
Journal of Health Care Finance
|January 1, 1996
Summary
Healthcare providers must focus on delivering "value," defined as the optimal balance of quality and cost. Success in managed care hinges on meeting evolving buyer expectations for healthcare value, as low-value providers will not survive.
Area of Science:
- Health Services Research
- Healthcare Management
- Health Economics
Background:
- Healthcare purchasers and consumers are redefining quality and cost.
- Value in healthcare is emerging as a critical determinant of success.
Purpose of the Study:
- To highlight the increasing importance of healthcare value.
- To emphasize the need for providers to understand buyer perceptions of value.
Main Methods:
- Conceptual analysis of healthcare market dynamics.
- Examination of the relationship between quality, cost, and value.
Main Results:
- Providers offering superior value are poised for success in managed care.
- Providers failing to deliver value face market failure.
Conclusions:
- Understanding and meeting buyer expectations for healthcare value is crucial.
- Market maturation and integrated systems will intensify competition based on value.