12 Apr Patients, Economics, Valuation In Healthcare
Post Written By Guest Blogger Andy DeLaO
Yesterday there was a wonderful article in Forbes entitled: Value In Healthcare–Time To Stop Scratching The Surface. (h/t to @jameyedwards for sharing it) It was a great look into the valuation of drugs as done today while pointing out some of the misses in the methodology.
Which spurred a comment by Cheryl Koehn (@CherylKoehn) that the calculation needs to include the patient view on the valuation. Which in theory I think would be an aspect of the “social factors” as indicated in the article.
However, it made me stop and think about this a bit more during my drive home last night.
In which I then responded with this thought:
Here is my methodology.
Today we live in the connection economy.
In the connection economy the value of any “product” is directly related to the amount of Attention and Trust the end user is willing to spend on any given “product.”
So value = trust.
Quality can be synonymous with Transparency. The more transparent the dialogue is between the patient and the physician, or person and care provider, the higher the quality. Open dialogue = high quality.
Service = Transitions. When the service we receive helps us Transition from not feeling well to being healthy again, that is high impact to all of us. Transitions can take on many forms whether from healthy to sick to healthy again or from check in for an appointment to imaging to leaving with results, how we manage the Transitions is the Service in the connection economy.
Cost (money) = time. Time is the one thing we all have but is NOT endless. Time is free, but it’s priceless. You can’t own it, but you can use it. You can’t keep it, but you can spend it. Once you’ve lost it, you can never get it back. (Harvey Mackay) Time is the ultimate cost for all of us.
So therefore, in the connection economy, people (patients and providers) would write the equation as I did above:
TRUST = TRANSPARENCY + TRANSITION
The healthcare industry needs to realize that in the world of the connection economy winning is equal to Time and Attention. You earn it with people. So productivity should be less about the number of people you see per hour and more about the number of connections you make.
Connections that actually earn Time and Attention.
Connections that focus on the 4T’s:
I welcome any comments or thoughts.