Value chains in health care

Abstract

The supply chain concept aided marketing by highlighting relationships that form a network of firms creating products for consumers. It helped change the focus from individual transactions to a more comprehensive view of the entire system. The value chain concept in marketing extends the supply chain view in an important way: it explicates the value that is created at each stage of the chain. For marketers, it is a vital tool in satisfying consumers – the final part of the value chain. This value chain can be viewed as having two components: the value delivery system and the consumer. This paper explores several approaches to value that are important in the functioning of the value chain. It then delineates three main elements of the value chain and traces them as they apply to services. It then focuses on one of the more complex services, the health care delivery system. It goes on to describe the health care value network and examine the critical factors that affect the success of the health care process. Finally, it delineates several important implications for health care marketers.