The ultimate quality indicator.
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Biomedical subjects
Publications and source records attributed to S MacStravic.
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In health care, Michael Porter's value chain can be reconceptualized as a "Value Marketing Chain," in which value is reinforced during each step of the customer recruitment and retention process. "Value" is a concept that must jointly be defined by buyer and seller as they interact every step of the way during the process. This requires the establishment of end-to-end mechanisms for soliciting feedback from customers.
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Health care, like other service industries, offers products to consumers that have "durable" value--for example, a joint replacement that enables a patient to resume activities he enjoys for a many years to come. But health care organizations have done little to make use of these durable value products, writes Scott MacStravic, a principal with Demand Engineering, who argues that adopting a durable value strategic may offer a strategic advantage for health care organizations.
If managed care organizations (MCOs) think of the benefits they offer and deliver in terms of narrow insurance coverage and limited payments for carefully circumscribed lists of health services, they miss the boat in marketing to consumers. Only by identifying, promising, delivering, and ensuring that consumers perceive core psychological benefits--a sense of security against catastrophic illness, assurance of access to necessary care, and the positive impacts on quality of life that health care can create--will MCOs realize the full potential of the real benefits consumers are after.
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Conventional wisdom holds that the best customers and prospects for managed care are the healthiest consumers. This is true only because of the meager extent to which premiums can be adjusted for varying risk among individuals. If a decent health/risk adjustment system were used, the best consumers for managed care to go after would be the highest-risk, highest users of health care, provided only that risk and use can be improved. The healthiest consumers have both the least potential for improvement and the least reasons for loyalty.
Except for the actual duration of an outpatient visit or inpatient stay, hospitals "own" no patients at all. How can population-based performance measures be calculated for a hospital that address the value it has delivered to its patients over the past year?
Seven categories of measures are typically used by managed care organizations (MCOs) in monitoring and evaluating the effects of demand improvement efforts on their own performance: (1) member participation in specific initiatives, (2) changes in member mind-states, (3) member behavior, (4) member health status, (5) member service use, and (6) health care expenditures, as well as (7) a variety of value-adding side effects. These same seven can be even more useful to MCOs in monitoring and demonstrating the value they are delivering to their customers. The potential for the MCOs to extend the use of these parameters and gain added value for themselves thereby are discussed, and specific examples are offered to illustrate this potential.
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