What is Value-Based Healthcare?
VBHC initiatives have been on the rise, ever since Porter and Teisberg introduced the concept of Value-Based competition, in response to the increasing cost of healthcare in the United States and the failure of reforms to improve health outcomes and contain costs. In their seminal book titled Redefining Healthcare (2006), Porter and Teisberg introduce seven principles of Value-Base competition with value being the main objective, simply defined as “the quality of patient outcomes relative to the dollars expended”.
This concept of value-based competition was taken further and developed into value-based healthcare which according to New England Journal of Medicine (NEJM) “is a healthcare delivery model in which providers, including hospitals and physicians, are paid based on patient health outcomes” . Under this health care delivery model, providers are “rewarded for helping patients improve their health, reduce the effects and incidence of chronic disease, and live healthier lives in an evidence-based way”.
CHI Value-Based Action Plan
Most of the programs that are part of CHI 2020-2024 strategy contribute to the VBHC agenda. For instance, value-based payment, implementation of NPHIES and data standards have direct contribution to achieving VBHC.
Other initiatives such as payer and provider benchmarking, and classification will also contribute towards this agenda. As part of its new vision and strategy, CHI plans a transformation journey from today's volume driven scheme with misaligned incentives, towards a value-based health system with value at the center and aligned incentives. Strategic objective number three aims to transform CHI scheme into a more innovative and sustainable healthcare-financing scheme, applying four major commitments to achieve this:
- Designing healthcare around the beneficiary.
- Improving health outcomes for the beneficiaries.
- Developing innovative financing models.
- Health technology and medical coding.
