Harvard Business Review

Measuring Outcomes: The Key to Value-Based Healthcare

Featuring Christina Åkerman and Caleb Stowell, moderated by Gardiner Morse

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ARTICLE SUMMARY

"We have found that the simplest and most powerful thing to do first [in transforming to a value-based system] is to start measuring outcomes."

Everyone in health care is focused on increasing value, by improving outcomes and lowering costs. But measuring value, organizing around it, and delivering it is incredibly challenging for many organizations. Christina Åkerman and Caleb Stowell laid out strategic questions that providers must address in transforming from their current volume-based systems to systems based on value. The transformation to value must be grounded in the measurement of outcomes. Measuring outcomes defines clear organizational goals, drives team alignment, and motivates clinicians to compare their results and learn from each other. It highlights value-enhancing cost-reduction opportunities, and enables payment to shift from volume to results.