Leadership, Strategy, and Innovation: Health Care Collection (8 Items)

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Principles of Value-Based Competition

THE ZERO-SUM COMPETITION of the 1990s and early 2000s in the United States health care system has clearly failed. It did not produce widespread improvements in the quality and cost of delivering care, nor widen access to care for all Americans. Instead, zero-sum competition perpetuated inefficiency and substandard quality. It also drove up administrative costs, inhibited innovation, and resulted in alarming cost increases for patients, employers, and the government. More and more Americans are without health plans. Participants in the system have been pitted against each other, to no one’s benefit.

Health care competition must be transformed to a value-based competition on results. This is the best way, ...