Harvard Business Review

Understanding Health Care’s Short-Termism Problem

By Amitabh Chandra and Dana Goldman

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ARTICLE SUMMARY

"The challenge is to figure out how to develop policies—and markets—to reward long-term benefits appropriately.”

"Paying for value" is one of the most overused tropes in health care today. It is also the least well understood, because its meaning is manipulated by each stakeholder. To those who pay the bills — employers, health plans, and even the government — value often means paying as little as possible for services. To patients, many of whom do not pay the full price of the care that they receive, value often means better outcomes regardless of cost."