The HIMSS Clinical & Business Intelligence (C&BI) Pathways to Value lays out a roadmap to realize value through a clinical & business intelligence program. C&BI is defined as “the use and analysis of data captured in the healthcare setting to directly inform decision-making.” But, what is value? And how does this action plan help to create value?
Let’s look at a couple of views of value in the context of health:
- Michael E. Porter and Elizabeth Teisberg defined value to patients in their 2006 book, “Redefining Health Care: Creating Value-Based Competition on Results,” as “health outcome per dollar of cost expended.”
- In “The Strategy that will Fix Health Care” in the Harvard Business Review (October, 2013), Michael E. Porter and Thomas Lee refined this to: “health outcomes achieved that matter to patients, relative to the cost of achieving those outcomes.”
- And most recently, Lawrence Shapiro in “Quality Care, Affordable Care: How Physicians Can Reduce Variation and Lower Healthcare Costs,” (Greenbranch Publishing, 2014) has gone on to refine the concept of value further: “appropriate + quality health outcomes that matter to patients, relative to the cost of achieving those outcomes.”
Value, then, is a new way of thinking simultaneously about outcomes relative to cost. Most of us traditionally have been trained to focus on either clinical outcomes without considering cost, or cost containment with an “acceptable margin” of clinical outcomes. And once we achieved our goal, then we determined if it was best for the patient. Starting from the other direction, “what matters to patients,” and then looking at the highest quality, most appropriate outcomes relative to cost, requires new visualization of data. We need to measure and analyze simultaneous clinical AND business data then display it in what is called a “value” dashboard. Here is an example from the HIMSS C&BI Task Force: 7 Ways to Maximize the Data Value Visualization in Dashboards.
We have many well developed tools to measure each side of the value equation. Now, by following the C&BI Pathways to Value action plan to capture and analyze both sides of the equation simultaneously and display this in meaningful ways that inform decision making, we have a framework to move beyond the parts of the equation and into measurable, meaningful healthcare transformation to value.
Let’s hear from you!
- How does your organization define value?
- Does it include appropriateness?
- What matters to patients?
- How does your organization measure costs and associate them to outcomes?
- What types of dashboards do you use to display not only outcomes and costs but also value?
- Have you used any of the HIMSS C&BI resources?