What Value Really Means
To improve healthcare, we must develop a better understanding of the relationship of quality and cost — a combination that we like to call “Value.”
Value = Quality / Cost
As the equation shows us, we must focus both on improving quality and on controlling cost in order to create value. A focus on value cannot be limited simply to healthcare leaders. Everyone — from the frontline physicians and nurses, to the payer, to the employer and the patient — should commit time and energy into defining true value.
Only by keeping our eyes on this value equation can we achieve sustainable change in healthcare.