Unlocking the True Value in Healthcare: A Framework for Measurable Impact

Medvale – February 21, 2025

In healthcare, “value” is often cited as a central goal, but what does it really mean? Why is it so hard to measure, and more importantly, how do we effectively buy and sell healthcare solutions while ensuring tangible value?

Here’s a framework based on insights shared in a recent Medvale Lyceum with Craig Solid, founder of Solid Research Group, to help navigate these complex discussions and make value more tangible for healthcare providers, buyers, and stakeholders.

Key Questions to Assess Healthcare Value

1. What Are You Measuring?

   • Start by identifying what specific aspects of value you are aiming to measure. Is it patient outcomes, cost savings, or something else entirely? Being clear on what value means in your context is essential for meaningful analysis.

2. To Whom is the Value Measured?

   • Understand that value is subjective. Who benefits from the intervention? A quality improvement that increases patient satisfaction may not yield immediate financial ROI but could reduce turnover and improve long-term patient loyalty.

3. Is Value Quantifiable?

   • While some components of value are easily measurable (e.g., cost per outcome), others, like emotional well-being or caregiver satisfaction, are more challenging to quantify. Focus on measurable outcomes like ROI, time saved, or reduced adverse events.

 

Want to dive deeper into this topic? Click here to listen to listen to the entire session from our recent Medvale Lyceum with Craig Solid moderated by Jim Trounon, where they explore these concepts in more detail and offer actionable insights.

 

Practical Steps for Sellers: How to Present Healthcare Value

1. Know Your Buyer’s Value Framework

   • Understand the specific metrics and outcomes that matter to the buyer. Different stakeholders—hospital administrators, payers, or providers—will have different priorities when it comes to defining value. Tailor your pitch accordingly.

2. Use Behavioral Insights to Craft Your Message

   • People’s decisions are influenced by biases and subjective experiences. When presenting the value of your product or service, anticipate and address potential biases, such as confirmation bias or the status quo bias, that could affect how it’s received.

3. Go Beyond Financials: Highlight Non-Monetary Benefits

   • Value isn’t only about money. Consider non-monetary benefits like staff well-being or better patient access. These can be powerful selling points when framed effectively.

Practical Steps for Buyers: How to Assess Healthcare Value

1. Look Beyond Quality per Dollar

   • A common mistake in healthcare is reducing value to a simple equation of “quality per dollar spent.” Consider broader metrics like long-term patient satisfaction, staff engagement, and clinical outcomes.

2. Think Holistically About Value

   • Assess how a solution fits into the larger system, taking into account its impact on workflow, culture, and overall organizational goals. Sometimes the highest ROI isn’t immediately financial but can emerge over time through improved systems and relationships.

3. Account for Uncertainty and Variability

   • When evaluating value, don’t settle on a single metric or estimate. Acknowledge the inherent uncertainty in healthcare solutions. Consider best- and worst-case scenarios to account for potential risks and variability in outcomes.

Conclusion: Starting the Value Conversation Early

For both buyers and sellers, the key to navigating healthcare value is starting the conversation early. In the case of healthcare startups, thinking about value from the design phase can help avoid costly misalignments later. By defining clear parameters—who benefits, how it’s measured, and over what timeline—you can ensure your value proposition aligns with the needs of healthcare providers and consumers alike.