Develop Strategy for Value Based Purchasing


Purely value propositions are no longer sufficient.

We explore this scenario both in this short video and in our Apathy to Action Whitepaper.

Our research indicates that well over half of hospitals use some form of value based purchasing. Some studies show it as high as 75%, whether formalized or informalized.

A Deloitte study describes it as a shift from Volume to Value:

From VolumeTo Value
Payment systems based on fee-for-service; limited financial risk Focus on maximizing value (lower cost and higher quality) of health care delivered through alignment of incentives and management of risk
Providers have incentives to increase payment rates, specialization/intensity, and volume; fragmentation of providers (”silos”)Care coordination driven by standardized protocols; use of information technology for information sharing
Limited focus on outcomes and information sharing Investment into supporting clinical integration, population health, and other cost reduction/revenue enhancement opportunities to respond to new payment systems and grow market share


Selling to Hospitals

The impact of this shift has caused a great deal of frustration in clinicians, who find themselves losing power to implement change in their environment. The result of this frustration and erosion of power, authority and control in the hospital buying process has created a certain apathy in some people [but certainly not all] approach the prospect of new technologies or clinical change.

This new healthcare selling environment requires a strategy for value based purchasing that enables stakeholders to gain support for changes they wish to make in their organization and impact the outcomes they wish to achieve.

Our HSP approach is to identify the critical behaviors and supporting resources that will enable your team to engage more strategically and effectively with the Value Analysis Team and prepare your clinicians to build business cases that have a higher chance of being approved.

For more information, see our Selling to Hospitals curriculum, which contains specific modules on developing strategy for Value Based Purchasing.