Value-based partnering in healthcare: A framework for analysis

Value-based partnering is designed to move the healthcare system beyond cos t-based competition. It recognizes that the healthcare "product" is not a c ommodity and that much of the value in the system comes from relationships between and among four stakeholders: consumers, providers, health plans, an d employers. Given the difficulty of measuring such benefits as quality of care, improve d health status, and increased employee productivity, stakeholders within t he system traditionally have focused on easily measurable financial conside rations such as premium rates. This focus has led to a system that defines relationships in purely financial terms. In contrast, the value-based partn ering model presented in this article recognizes the range of factors that stakeholders consider in their relationships with each other. This approach has the potential to change the nature of competition and pre sents opportunities for those organizations that can effectively partner wi th other stakeholders and demonstrate value, rather than just lower cost. M oreover, by recognizing the interdependencies among stakeholder groups, the approach creates a strategic reason for employers, health plans, providers , and consumers to exchange information and create long-term alliances.