In their Perspective paper ‘Why Strategy Matters Now’, Michael E. Porter and Thomas H. Lee focus on value.

In healthcare today, “Value is defined as the health outcomes achieved for patients relative to the costs of achieving them”.

“Value is created by improving the outcomes of patients” and this is done (with personalised care) over a distributed system.

“Value can be measured and managed only in terms of a defined need that is being met, so that outcomes can be clearly identified and costs compared”.

But in traditional healthcare businesses with “highly heterogeneous patients, outcomes have little meaning and cost comparisons are irrelevant” – thus value seems to require a degree of standardisation of patients.

Then “transparency regarding outcomes, will attract more patients and create a virtuous cycle of improving value”. This suggests the need for Data, to make outcomes visible (transparent).

“Organizations need to create a unique value proposition in each business”.

The conclusion is that with changing strategies there will be disruption, but “a strategy anchored in value is inherently good for both patients and the professional satisfaction of those who care for them”.

The article is published on The  New England Journal of Medicine:

Perspective: Why Strategy Matters Now, Michael E. Porter, Ph.D., and Thomas H. Lee, M.D, N Engl J Med 2015; 372:1681-1684April 30, 2015 DOI: 10.1056/NEJMp1502419 http://www.nejm.org/doi/full/10.1056/NEJMp1502419