The Dilemma of Managing Value

Abstract

"Value" is an elusive term, but talk of how to manage value raises the specter of chaos. Value is defined as a working equation involving appropriateness of care, quality of outcomes and service, and cost. One hypothesis is that purchasers and providers will ultimately recognize that the value of health care services provided is critical because value, properly managed, directly addresses the volatile issue of containing health care costs. But to achieve success in managing value, providers must initiate new strategies and transform organizational and clinical priorities and practices. As the contest intensifies between society's infinite demand for health care services and finite resources, the need to truly subscribe to the management of value will become ever more important. Those providing care will learn to appreciate that long-term success will depend on much more than mere cost cutting.