The Value of Health Care
The development of value based healthcare reimbursement systems between healthcare payers and healthcare providers is evolving from the need to provide patients with beneficial healthcare technologies under conditions of significant economic uncertainty. The concept examined centralizes on shifting the focus of the healthcare system from volume to value. Value is measured by outcomes achieved based on a full cycle of care not volume of services rendered based on each service performed.
Summary of Article
The article chosen for this assignment was published on December 23, 2010 in the New England Journal of Medicine (Porter, 2010). The author, Porter (2010) examines the role of value in the healthcare system in the United States. According to Porter (2010) “Value should define the framework for performance improvement in healthcare.” Porter indicates that value in healthcare should be measured by outcomes achieved not the volume of services rendered. According to Porter (2010), “The proper unit for measuring value should encompass all services or activities that jointly determine success in meeting a set of patient’s needs.
Posistive and Negative Affects, Cost, Quality, Access, Trade-offs
The national pay for value based system development has positive and negative aspects. System implementation will require multiple entity participation. Hospitals, physicians, outpatient centers, and clinics all will be responsible for collaboration in developing an integrated communication system which will present additional expense on the front end. Government mandates will be required; from implementation dates to specified circumstances in which assistive funding may be available. Multi provider system integration will mean no duplication of services, a seamless transition from one treatment phase to the next and a more effective plan of care for the patient.
Comprehensive measurement of plan integration and outcome results are advantageous to the provider of services and to the patient. Public reporting should be phased in with provider input to build confidence on the provider end. Progression to public reporting will accelerate innovation by motivating providers to improve relative to their peers. Lee (2010) indicates the goal of public reporting is to create a context for improvement, for every provider group to try to be better this year than last year. Public reporting will provide a baseline for improvement of outcomes with out compromising others and a guideline to cost reduction while achieving the same outcome level. Also, introduction of public reporting will allow integration of the healthcare system into the free market system thereby reducing cost while inproving quality.
According to Porter (2010) “Currently value in health care remains largely unmeasured and misunderstood. Rigorous, disciplined measurement and improvement of value is the best way to drive system progress.” ...