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 Organisation for Economic Co-operation and Development (OECD) predicts healthcare 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 healthcare industry and make the case for why providers, suppliers, consumers, and employers should move toward 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 edition of th