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    Volume to Value in Healthcare

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    Consider the impact of the transition from volume- to value-based health care delivery in your organization or one with which you are familiar.
    Potential transitions to consider may be examples such as the shift from inpatient to ambulatory care, the Patient Centered Medical Home (PCMH) initiative, or the Delivery System Reform Incentive Payment (DSRIP) initiative.
    With this in mind, read the Porter and Lee article published in the Harvard Business Review, and compare their strategic proposal with the transition you are considering.

    Describe the nature of the transition in the organization. Discuss and assess how this transition affected operations, based on the organization's operational resources and limitations. How did the organization respond to the changes? Was the response effective? How does the IPU approach compare to the transition response? Justify your conclusion. Recommend an alternative course of action

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    Solution Preview

    The transition from volume to value based health care delivery in my organization has been taking place over several years. Essentially, the effort has been to reduce costs and improve performance.
    The first impact has been on the manner in which payments are made. A team of physicians receive a single payment to cover all the services their patients need during a year. These payments are adjusted upwards if the patient has a severe condition. The team gets paid more for taking care of severely affected patients. The response from teams is positive. My organization has also responded by restructuring the teams.
    One important change I have seen over years is an increase in the use of outpatient care for services that earlier were provided after hospitalization. These include diagnosis, observation, consultation, treatment, intervention, and rehabilitation services. There is greater use of outpatient services for diabetes or chronic asthma. Minor surgical procedures, medical procedures, dental services, dermatological services, and diagnostic procedures are now performed on ...

    Solution Summary

    The answer to this problem explains the impact of transition from volume to value in my healthcare organization. The references related to the answer are also included.