Value Management in Healthcare

"Value. Value based care. Value optimization. Policy makers and providers alike are pressing on all fronts to drive healthcare to a better place based on "value". The risk is that value becomes a hollow, overused term with little or no quantifiable meaning. Nathan Tierney has compiled an excellent resource to help us avoid such a fate. Building upon the concept of a Value Management Office, Mr. Tierney provides us with a blueprint on how and why to create such an office, how to quantify value, and how to achieve a shared understanding and vision of what success looks like. This detailed roadmap is a must read for all in healthcare as a guide to understanding how to build value into our health delivery systems and to deliver measurable value-oriented outcomes." -H. Stephen Lieber, President & CEO HIMSS "Value-based health care is one of the most important concepts in health reform to emerge in the past 100 years of modern medicine. The concept, developed by Harvard Business School Professor Michael Porter, asks that the industry reshapes how it is organized and what it measures to improve outcomes and control costs. It is a concept that is embraced by patients, clinicians, administrators, and payers. While sometimes thought to be strictly conceptual, Nathan Tierney has assembled a book that takes health care organizations through a step by step process of how to create and run a value management office. He covers not only the basics of the value-based healthcare framework but addresses key issues like change and project management. This well written and concise guide will be essential for any organization embarking on a value-based health care journey." -Dr. Thomas Feeley, MD Anderson and Senior Fellow Harvard Business School " As healthcare organizations transition from traditional fee-for-service to value-based models of reimbursement, theyre re-engineering the way they do business. They need processes and solutions that help them define and achieve outcomes-based success. The Value Realization Framework describes the underlying principles organizations need to mark their progress. Its another tool that can help organizations meet the operational, regulatory and quality demands of health care today and in the future. -Paul M. Black, CEO Allscripts "Beautiful writing!" -Dr. Regina Herzlinger, Harvard Business School and Author of Who Killed Healthcare? "There is no industry or business in the world that measures its services by something other than their added value. Yet, value-based healthcare delivery is a relatively new concept in the healthcare industry. Although we have witnessed a global trend moving towards the development of value-based healthcare services, the United States is lagging behind many developed countries in this regard. The current fee-for-service model that incentivizes doctors and hospitals to increase volume and, possibly, demand for services, is perhaps one of the main causes of rising healthcare costs and the U.S. Strategies to prioritize value over volume are still in their infancy, due to many confounding factors. In this book, Nathan Tierney has eloquently described the fundamental problem in the healthcare industry and has elegantly presented evidence-based practical algorithms and solutions to establish a value-based healthcare management plan/initiative. Any change in healthcare delivery is going to be slow, fraught with challenges. But such progress will not even begin unless all the main players, including the public, healthcare providers and legislators understand and acknowledge the need for change. "Value Management in Healthcare" is a concise, well-written book for all parties to learn about the current problem, the urgent need for change, and the potential solutions." -Shahin Tabatabaei, MD, Director, MGH Prostate Health Program, Department of Urology, Massachusetts General Hospital "For hospital

Tierney, Nathan William

Introduction: Putting Healthcare Value into Perspective; Chapter 1: Executive Summary; Problems facing healthcare delivery organizations; Recommendation for healthcare delivery organizations; Chapter 2: Healthcare Landscape; Global trends; Value-based trends; Summary of key points to remember; Chapter 3: How to Measure Value; Value Myths; A Healthcare Value-based balanced scorecard; Summary of key points to remember; Chapter 4: Value Management Office; The concept; Mission and vision; Role of the value management office; Governance and staffing of the value management office; Benefits of the vale management office deliverables; Management dashboards; Performance scorecards; Summary of key points to remember; Chapter 5: Value Realization Framework; Need for a framework;Value equation for healthcare; Application of the value realization framework and value equation; Summary of key points to remember; Chapter 6: Steps in the Value Realization Framework; Process overview; Step 1 critical success factors; Step 2 key results indicators; Step 3 key performance indicators; Step 4 value management; Summary of key points to remember; Chapter 7: Outcomes Metrics; Clinical outcomes; Financial outcomes; Patient satisfaction; Process improvement; Clinical satisfaction; Learning and growth; Summary of key points to remember; Chapter 8: Common Operating Picture; Getting insight from data; How does the common operating picture (COP) works?; Business analytics in healthcare; Summary of key points to remember; Chapter 9: Program Core Metrics; Program value management; Schedule reporting metrics; Cost reporting metrics; Resources key performance indicator; Scope key performance indicator; Quality key performance indicator; Risks key performance indicator; Summary of key points to remember; Chapter 10: Technical Metrics; Technical value management; Technology process index; ISO standards for software quality; Summary of key points to remember; Chapter 11: Other Index Metrics; Other metrics; Product portfolio index; New products index; Feature function index; Time-to-market index; Research and development success index; Summary of key points to remember; Chapter 12: Change Management; Transformation process overview; Step 1: create urgency; Step 2: building guiding coalition; Step 3: form strategic vision and initiatives; Step 4: communicate the vision; Step 5: remove obstacles; Step 6: create short term wins; Step 7: build on change; Step 8: anchor the change in corporate culture; Working groups; Summary of key points to remember; Appendix 1: Acronym list; Appendix 2: SMART Criteria; Appendix 3: Value Management Meeting Template; Appendix 4: References