Value-Based vs. Volume-Based U.S. Healthcare System

I just read an interesting article by Horner and Basu (2012) where they quote Steve Conti, senior director of clinical innovation and population management at Seton Healthcare Family and head of the analytics committee at the Integrated Care Collaboration as saying, “Within five years, the U.S. healthcare industry will move from a largely fee-for service, volume-based system to a value-based system. And the way you get to that new type of structure is through analytics.” This is an astute observation. The U.S. healthcare systems surely has to move from volume-based to value-based incentives. Even given with a push from the federal government, I’m not quite as sanguine as Conti in thinking this will happen within 5 years, but within 10 years does seem likely. This has obvious implications for providers and payers, but the impact on big pharma will be no less profound. The winners will be those large pharmaceutical companies that are already getting ahead of the curve by moving assertively to align themselves (and their products & services) with the outcome and value based environment that is slowly but surely coming to the U.S., Europe, and elsewhere.  And analytics are indeed essential to making that transition; that’s a key reason why CHI is beginning to focus heavily on data analytics.

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ABOUT THE AUTHOR:

James J. Gillespie, Ph.D., J.D.

JAMES J. GILLESPIE, PH.D., J.D.

CEO of the Center for Healthcare Innovation & Editor of PharmaThought

 

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Life sciences industry leaders share the latest in pharmaceuticals, biotechnology, medical devices and nanotechnology.

James J. Gillespie, Ph.D., J.D.Charlotte Rocker, MBA, MSDennis UrbaniakBrian Speicher, MBASalil Kallianpur, MBAGeorge Zorbas, MA, MS

JAMES J. GILLESPIE, PH.D., J.D.

CHARLOTTE ROCKER, MBA, MS

DENNIS URBANIAK

BRIAN SPEICHER, MBA

SALIL KALLIANPUR, MBA

GEORGE ZORBAS, MA, MS

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