How to Reduce Costs While Delivering Ideal Outcomes and Experiences
Achieving value in today’s healthcare environment requires improving outcomes and experiences while lowering costs. This is a significant challenge for providers who have only worked in a healthcare environment where payment has been based on the volume of services.
At the same time, charges for these services have long been based on providers’ or organizations’ more global health care costs, often as a ratio of cost-to-charges. A new tool, however, is making it possible for all healthcare constituencies (providers, hospitals, insurers, and policy makers) to identify true cost to deliver care (e.g., total joint replacement surgery, hysterectomy, diabetes care, etc.).
This is a significant shift that will allow us to understand cost drivers and move from volume to value throughout the healthcare continuum.