By Andrew Webber
Price is what you pay. Value is what you get.” While Warren Buffett may not have been talking about purchasing healthcare benefits, I think he would agree that for too many years, employers, as the largest purchasers of healthcare outside of the federal government, have put too much focus on price and not nearly enough on value.
So it is apropos that once again Modern Healthcare’s Healthcare Purchasing Power Survey results are released the same week as the National Business Coalition on Health’s annual conference. This week, nearly 500 healthcare industry stakeholders, including purchasers from across the nation, will convene in Washington to collaborate on value-based purchasing strategies to improve health and transform healthcare, and in so doing, better control costs.
Value-based purchasing strategies can have payment reform, and consumer choice and engagement, value-based purchasing represents a number of activities in which public and private purchasers measure, report and reward healthcare value.