Skip to content
  • About
  • Contact
  • Contribute
  • Book
  • Careers
  • Podcast
  • Recommended
  • Speaking
KevinMD
  • All
  • Physician
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • Video
  • All
  • Physician
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • Video
    • All
    • Physician
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • Video
    • About
    • Contact
    • Contribute
    • Book
    • Careers
    • Podcast
    • Recommended
    • Speaking
KevinMD
  • All
  • Physician
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • Video
    • All
    • Physician
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • Video
    • About
    • Contact
    • Contribute
    • Book
    • Careers
    • Podcast
    • Recommended
    • Speaking
  • About KevinMD | Kevin Pho, MD
  • Be heard on social media’s leading physician voice
  • Contact Kevin
  • Discounted enhanced author page
  • DMCA Policy
  • Establishing, Managing, and Protecting Your Online Reputation: A Social Media Guide for Physicians and Medical Practices
  • Group vs. individual disability insurance for doctors: pros and cons
  • KevinMD influencer opportunities
  • Opinion and commentary by KevinMD
  • Physician burnout speakers to keynote your conference
  • Physician Coaching by KevinMD
  • Physician keynote speaker: Kevin Pho, MD
  • Physician Speaking by KevinMD: a boutique speakers bureau
  • Primary care physician in Nashua, NH | Doctor accepting new patients
  • Privacy Policy
  • Recommended services by KevinMD
  • Terms of Use Agreement
  • Thank you for subscribing to KevinMD
  • Thank you for upgrading to the KevinMD enhanced author page
  • The biggest mistake doctors make when purchasing disability insurance
  • The doctor’s guide to disability insurance: short-term vs. long-term
  • The KevinMD ToolKit
  • Upgrade to the KevinMD enhanced author page
  • Why own-occupation disability insurance is a must for doctors

What exactly is value in health care?

Neel Shah, MD
Policy
March 31, 2015
Share
Tweet
Share

Recently, I had the opportunity to sit at the table with some of the nation’s top thought leaders. We convened at the Newseum in Washington, DC, for the Healthcare Leadership Council’s National Dialogue for Healthcare Innovation; it was like a health policy nerd red carpet. Center for Medicare Director Sean Cavanaugh was there. Leapfrog Group CEO Leah Binder was there. America’s favorite bioethicist–oncologist–provocateur Zeke Emanuel was there. The chief executives of providers, payers, pharmaceutical companies, government agencies — all there. And what were they there to do? Define “value” in health care.

Really.

In 2015.

Don’t get me wrong. Everyone there, including myself, felt this was a worthy goal. What is lamentable is that it remains such a struggle to get this done — particularly in an era where the Internet has made transparency ubiquitous and value obvious in every other industry. In the morning, the illustrious group quickly converged around a functional definition: Value equals quality divided by cost, preferably at the clinical condition level. Fine. But then the discussion became more nuanced.

The more macro-economically inclined pointed out that the United States fails to deliver value (using our working definition) compared to peer countries. The technologists balked. We create amazing things: Mayo Clinics, proton beam facilities, medicines that cure hepatitis C. Surely there is value in that? I saw their point. While our European counterparts are well optimized to take care of the “average” patient for whom our value equation is designed, the United States is optimized to take care of the “exceptional” patient. Perhaps the Mayo Clinic doesn’t have an equivalent across the pond for a reason, and perhaps our definition of value should account for the fact that we prefer to create amazing things.

As the discussion evolved, it became clear that innovators and implementers were thinking about the value equation differently. It also became clear that, somewhere, along the arc of progress from developing an exciting new technology to deploying it at the patient’s bedside, a critical failure was happening. As a result, opportunities to generate value through innovative technology repeatedly attenuate when we try to apply them to patients. That is what we needed to get our heads around. That is what payment reform and delivery reform need to solve.

As it turns out, not everyone needs to go to the Mayo Clinic or use the latest and greatest technologies. But then again, some do. Without a well-coordinated health system, we’re unable to match our capabilities up with our needs on a patient-by-patient basis.

As we passed the microphone, there were a few rays of hope. Health and Human Services Secretary Sylvia Burwell established a timeline last month for moving the American health care payment system from volume to value; this was mentioned several times as an important catalyst for change. Also mentioned were the demonstrations of true delivery reform among a few pioneering organizations — providers who were navigating the complexity of the current system to deliver risk-appropriate, high-value care.

Emanuel put it best it in typically wry fashion: To move forward we need to “stop beating a dead fish.” Just as there are many examples of what doesn’t work, there are also shining examples of what does work. To preserve the value of promising advances in American medicine, the nation’s health care leaders need to look hard to find these positive examples, support them, and bring them to scale.

Neel Shah is executive director, Costs of Care.

costs_of_care_logo_small

This post originally appeared on the Costs of Care Blog. Costs of Care is a 501c3 nonprofit that is transforming American health care delivery by empowering patients and their caregivers to deflate medical bills. Follow us on Twitter @costsofcare.

Prev

Tips for resolving conflicts when a partner is chronically ill

March 31, 2015 Kevin 0
…
Next

Is there a role for doctors in the brave new health care world?

March 31, 2015 Kevin 16
…

Tagged as: Primary Care, Public Health & Policy

< Previous Post
Tips for resolving conflicts when a partner is chronically ill
Next Post >
Is there a role for doctors in the brave new health care world?

ADVERTISEMENT

More by Neel Shah, MD

  • Childbirth in the U.S. and India: How it falls short and why

    Neel Shah, MD
  • a desk with keyboard and ipad with the kevinmd logo

    Choosing wisely and delivering value in obstetrics and gynecology

    Neel Shah, MD

More in Policy

  • Value-based care workforce: Bridging the gap in clinical education

    Kenneth Botelho, DMSc, PA-C
  • The death of private practice: unequal pay and hospital power

    John C. Hagan III, MD
  • Curing U.S. health care: Why a fair health tax is the answer

    Kevin
  • Rural health care crisis: Can telemedicine close the gap?

    Griffin Popp
  • Single-payer health care vs. market-based solutions: an economic reality check

    Allan Dobzyniak, MD
  • Value-based care data gap: Why metrics fail to reach the bedside

    Ido Zamberg, MD
  • Most Popular

  • Past Week

    • Single-payer health care vs. market-based solutions: an economic reality check

      Allan Dobzyniak, MD | Policy
    • Value-based care data gap: Why metrics fail to reach the bedside

      Ido Zamberg, MD | Policy
    • The healing power of physician presence in modern medicine

      Farid Sabet-Sharghi, MD | Conditions
    • The pause medicine never taught us to take

      Mary Wilde, MD | Physician
    • How naming grief can restore meaning in medical practice

      Patrick Hudson, MD | Physician
    • What the folinic acid retraction means for autism treatment

      Timothy Lesaca, MD | Physician
  • Past 6 Months

    • Missed diagnosis visceral leishmaniasis: a tragedy of note bloat

      Arthur Lazarus, MD, MBA | Conditions
    • Alex Pretti: a physician’s open letter defending his legacy

      Mousson Berrouet, DO | Physician
    • Health care as a human right vs. commodity: Resolving the paradox

      Timothy Lesaca, MD | Physician
    • The American Board of Internal Medicine maintenance of certification lawsuit: What physicians need to know

      Brian Hudes, MD | Physician
    • Why voicemail in outpatient care is failing patients and staff

      Dan Ouellet | Tech
    • Why private equity is betting on employer DPC over retail

      Dana Y. Lujan, MBA | Policy
  • Recent Posts

    • Modern technology must revolutionize the archaic physician job search [PODCAST]

      The Podcast by KevinMD | Podcast
    • Why death certificates fail to capture the reality of aging

      Deon Hayley, MD | Conditions
    • AI governance in health care: Why physicians must lead the design

      Tod Stillson, MD | Physician
    • Managing celiac disease: Overcoming the hidden social burden

      Kamiah Gibson | Conditions
    • Military leadership lessons for the U.S. health care crisis

      Richard A. Lawhern, PhD | Conditions
    • Surgical practice efficiency: How to fix a broken system

      Paul Toomey, MD | Physician

Subscribe to KevinMD and never miss a story!

Get free updates delivered free to your inbox.


Find jobs at
Careers by KevinMD.com

Search thousands of physician, PA, NP, and CRNA jobs now.

Learn more

View 25 Comments >

Founded in 2004 by Kevin Pho, MD, KevinMD.com is the web’s leading platform where physicians, advanced practitioners, nurses, medical students, and patients share their insight and tell their stories.

Social

  • Like on Facebook
  • Follow on Twitter
  • Connect on Linkedin
  • Subscribe on Youtube
  • Instagram

ADVERTISEMENT

  • Most Popular

  • Past Week

    • Single-payer health care vs. market-based solutions: an economic reality check

      Allan Dobzyniak, MD | Policy
    • Value-based care data gap: Why metrics fail to reach the bedside

      Ido Zamberg, MD | Policy
    • The healing power of physician presence in modern medicine

      Farid Sabet-Sharghi, MD | Conditions
    • The pause medicine never taught us to take

      Mary Wilde, MD | Physician
    • How naming grief can restore meaning in medical practice

      Patrick Hudson, MD | Physician
    • What the folinic acid retraction means for autism treatment

      Timothy Lesaca, MD | Physician
  • Past 6 Months

    • Missed diagnosis visceral leishmaniasis: a tragedy of note bloat

      Arthur Lazarus, MD, MBA | Conditions
    • Alex Pretti: a physician’s open letter defending his legacy

      Mousson Berrouet, DO | Physician
    • Health care as a human right vs. commodity: Resolving the paradox

      Timothy Lesaca, MD | Physician
    • The American Board of Internal Medicine maintenance of certification lawsuit: What physicians need to know

      Brian Hudes, MD | Physician
    • Why voicemail in outpatient care is failing patients and staff

      Dan Ouellet | Tech
    • Why private equity is betting on employer DPC over retail

      Dana Y. Lujan, MBA | Policy
  • Recent Posts

    • Modern technology must revolutionize the archaic physician job search [PODCAST]

      The Podcast by KevinMD | Podcast
    • Why death certificates fail to capture the reality of aging

      Deon Hayley, MD | Conditions
    • AI governance in health care: Why physicians must lead the design

      Tod Stillson, MD | Physician
    • Managing celiac disease: Overcoming the hidden social burden

      Kamiah Gibson | Conditions
    • Military leadership lessons for the U.S. health care crisis

      Richard A. Lawhern, PhD | Conditions
    • Surgical practice efficiency: How to fix a broken system

      Paul Toomey, MD | Physician

MedPage Today Professional

An Everyday Health Property Medpage Today

Copyright © 2026 KevinMD.com | Powered by Astra WordPress Theme

  • Terms of Use | Disclaimer
  • Privacy Policy
  • DMCA Policy
All Content © KevinMD, LLC
Site by Outthink Group

What exactly is value in health care?
25 comments

Comments are moderated before they are published. Please read the comment policy.

Loading Comments...