Value in Healthcare: Laying the Foundation for Health System Transformation
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Global healthcare has seen tremendous advancements in medical knowledge and innovation yet many informed observers doubt that society is getting the full value of the annual USD 6.5 trillion spent worldwide on healthcare. It is estimated that 30-50% of this spend is "wasted". The increasing complexity of medical knowledge and practice has created a system of top-down rules and structures that attempt to "optimize" the system. This optimization, however, is prevented by the misalignment of incentives, interests, strategies and behaviours of parties engaged in healthcare delivery. The result is disparities in the quality of care delivered, unsustainable costs, and patient and physician frustration to an ever more convoluted system.
Recognizing these misalignments prevent healthcare systems from concentrating on outcomes that matter to patients, this multi-stakeholder project creates roadmaps to eliminate these misalignments and focus healthcare systems on value. The core tenets of Value-based Health Care (VBHC) revolve around the idea of aligning all stakeholders of a system towards value delivered to patients. It is defined as delivering the best health outcomes for a given cost.