HSA 501 Assignment 1 Value Proposition in Patient Care
Assignment 1: Value Proposition in Patient Care
Tabitha Christina Trisvan
HSA 501
Management in Healthcare
Dr. Judy Jean
January 25, 2015
1. The meaning of value-added service Responsible Reform for the Middle Class stated, The Patient Protection and Affordable Care Act will ensure that all Americans have access to quality, affordable health care and will create the transformation within the health care system necessary to contain costs. One part of the transformation is the creation of value proposition. Value proposition is a promise of value to be delivered. Value is defined as “a fair return or equivalent in goods, services, or money for something exchanged; the monetary worth of something; market price; or the relative worth, utility, or importance (Merriam-Webster 2010).” In health care, the Agency for Healthcare Research and Quality states value refers to reducing unnecessary costs (waste) and increasing efficiency while maintaining or improving healthcare quality. In healthcare, value is measured by the outcomes achieved, not the volume of services delivered nor measured by the process of care used. Value can be seen as a mathematical equation. Outcomes are the numerator of the value equation. The outcomes are perceived as the real measures of quality. Outcome measurement focuses on the immediate results of particular procedures or interventions, rather than the overall full care cycle for medical conditions or primary and preventive care. Cost, is the equation's denominator. It refers to the total costs of the entire cycle of care for the patient's medical condition. To, the best approach is often to spend more on some services to decrease the need for others. An example of why value added services matter is because the value should be about the patients. No longer should it be about how many patients a physician can see, how many tests and procedures the physician can order, or how much the doctor offices or hospitals can charge
Tabitha Christina Trisvan
HSA 501
Management in Healthcare
Dr. Judy Jean
January 25, 2015
1. The meaning of value-added service Responsible Reform for the Middle Class stated, The Patient Protection and Affordable Care Act will ensure that all Americans have access to quality, affordable health care and will create the transformation within the health care system necessary to contain costs. One part of the transformation is the creation of value proposition. Value proposition is a promise of value to be delivered. Value is defined as “a fair return or equivalent in goods, services, or money for something exchanged; the monetary worth of something; market price; or the relative worth, utility, or importance (Merriam-Webster 2010).” In health care, the Agency for Healthcare Research and Quality states value refers to reducing unnecessary costs (waste) and increasing efficiency while maintaining or improving healthcare quality. In healthcare, value is measured by the outcomes achieved, not the volume of services delivered nor measured by the process of care used. Value can be seen as a mathematical equation. Outcomes are the numerator of the value equation. The outcomes are perceived as the real measures of quality. Outcome measurement focuses on the immediate results of particular procedures or interventions, rather than the overall full care cycle for medical conditions or primary and preventive care. Cost, is the equation's denominator. It refers to the total costs of the entire cycle of care for the patient's medical condition. To, the best approach is often to spend more on some services to decrease the need for others. An example of why value added services matter is because the value should be about the patients. No longer should it be about how many patients a physician can see, how many tests and procedures the physician can order, or how much the doctor offices or hospitals can charge
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