Shifting Focus from Cost to Outcome in Healthcare

Healthcare expenditures are on the rise and cost-controlling seems not to work as intended. Instead of focusing to keep cost down, focus on value for the patient. The approach was introduced by Michael Porter a few years ago and is getting more and more respect.

The Boston Consulting Group conducted a broader study on the effects of value-based payment methods and health outcomes - with promising effects.

Check out the full article at BCG-Perspectives.

Brief summary:
Focusing on patient-value instead of cost should be a key priority for healthcare and pharmaceutical providers. Not only does the payment method influence the focus of healthcare providers but the effectiveness of the treatment itself (Exhibit 1).

The re-focus from cost-savings to improved healthcare value for the patient remains one of the most interesting fields of research in the healthcare sector. Let's see how this will develop over the next few years.