Value Management in Healthcare - How to Establish a Value Management Office to Support Value-Based Outcomes in Healthcare

Our current healthcare system is broken. The Organization for Economic Co-Operation and Development (OECD) predicts health care costs could increase from 6% to 14% of GDP by 2060. The cause of this increase is due to (1) a global aging population, (2) growing affluence, (3) rise in chronic diseases, and (4) better-informed patients; all of which raises the demand for healthcare. In 2006, Michael Porter and Elizabeth Teisberg authored the book -Redefining Health Care: Creating Value-Based Competition on Results.- In it, they present their analysis of the root causes plaguing the health care industry and make the case for why providers, suppliers, consumers, and employers should move towards a patient-centric approach that optimizes value for patients. According to Porter, -value for patients should be the overarching principle for our broken system.- Given the current state of global healthcare, there is urgency to achieve widespread adoption of this new approach. The updated second edi