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Succeeding in a Value-Based Environment

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Succeeding in a Value-Based Environment

New Business Models to Thrive in the Future of Healthcare

EIU,

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In medicine, quality trumps quantity.

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Forecasts estimate that, without intervention, US health care expenditures will rise by 5.8% annually until 2022, outpacing economic growth by as much as one percentage point each year. The Economist Intelligence Unit focuses on a promising approach for containing costs while also improving outcomes for patients. Since more and more nations are opting for “value-based” methods as the strategy of choice for health care delivery, getAbstract recommends this fact-filled overview of the field.

Summary

Though governments are striving to reduce spending, global health care costs will grow by 5% annually until 2019, reaching almost $9 trillion. Several nations, including the United States and Germany, are shifting from traditional methods of health care to new “value-based” models, which maximize “outcomes over cost.” A value-based approach reimburses providers based on results rather than volume of service. As well as meeting high regulatory standards, a value-based system requires new drugs to prove their effectiveness vis-à-vis offerings already on the market. This method prices drugs and treatments according to their impact. It keeps...

About the Author

The Economist Intelligence Unit is an independent research and analysis organization.

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