From Fee-for-Service to Fee-for-Value – Strategy+Business

Medicare is starting a new paradigm in paying for healthcare – focus on outcomes and not volume

SuperiorAppliancesSwitching from volume-based to value-based payments is key to the sustainability of the healthcare system. Why? Because all the healthcare providers will be encouraged to focus on the outcomes for the patients instead of the number of procedures undertaken for him or her.

It is not a new principle: the first author who has been speaking about Value in Healthcare is M. E. Porter in 2006 when he published a book about it. Since then, he committed a lot to raise the awareness about the importance and extent of this concept. He founded the Harvard Institute for Strategy and Competitiveness which dedicates a research area to healthcare.

I think it is really the direction where we have to go if we want to provide care to all people without wealth discrimination.

Strategy+Business article