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.