Value-Based Purchasing in the Healthcare - VALUE-BASED PURCHASING IN THE HEALTHCARE Page 1 Value-Based Purchasing in the Healthcare Instructor Class

Value-Based Purchasing in the Healthcare - VALUE-BASED...

This preview shows page 1 - 4 out of 11 pages.

VALUE-BASED PURCHASING IN THE HEALTHCARE Page 1 Value-Based Purchasing in the Healthcare Instructor Class Date Name
Image of page 1
VALUE-BASED PURCHASING IN THE HEALTHCARE Page 2 Accurately measuring the performance of individuals, departments, projects, and initiatives is a good way to ensure strong, sustainable results in an organization. Performance measures quantitatively tell us something important about services, and the processes that produce them. Measurements are tools to help providers understand, manage, and improve in areas they are lacking. The text states that organizations measure performance to meet multiple internal and external needs and demands. Internally they measure current performance that identifies the strengths and weaknesses of the current process giving insight of areas that needs improvement. When measuring the external performance objectives you are assessing healthcare provider accountability, decision-making, public reporting, organizational evaluation and supporting national improvement goals and activities. The framework for measurement is support by leadership commitment, staff understanding and participation, partnership with key stakeholders, performance improvement oversight, use of a performance improvement method, development of performance improvement protocol, the identification and response to performance improvement resources, recognition and acknowledgement of performance improvement efforts and continuous assessment of improvement efforts. Important here to note is that healthcare marketing is significantly different consumer goods marketing because of several factors. First, the customer or consumer in the case of the healthcare industry is the patient, who unlike in the consumer goods industry, is not always right and does not always know about his needs and wants. Therefore, the traditional rules of supply and demand do not apply in the healthcare industry (Blair & Boal, 1991). The demand curve suggests that a reduction in price is likely to increase demand, but in health care industry, several companies that have decreased
Image of page 2
VALUE-BASED PURCHASING IN THE HEALTHCARE Page 3 price in the past have found themselves with lower demand as consumers saw the same with skepticism and perceived it to an indication of a comprise on quality. Second, when consumer goods marketers enjoy a considerable degree of relative freedom in devising their advertising, promotional, pricing and other marketing strategies, healthcare providers find themselves subjected to several laws and regulations limiting their choices and strategies (Kotler, et al., 2011). For example, when many consumer goods marketers have the liberty to pursue any pricing strategy from market skimming, value based, cost plus, market penetration, economy, premium and others; health care marketers have to price their offerings to fall within a specified bracket (Gray & Christiansen, 2008).
Image of page 3
Image of page 4

You've reached the end of your free preview.

Want to read all 11 pages?

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes