IDC's View on Value-Based Healthcare, Q&A with Jonas Knudsen


Most hospitals in Europe are partly financed by their ability to create volume. The more patients each hospital treats the more money it receives. The problem with volume- based healthcare is that the quality is reduced to a non- existing parameter, or even worse — seen as equal to the volume and low cost. But a singular focus on cost and operational efficiency and thereby on productivity is changing towards a more patient-centric and holistic approach by most nations in Western Europe. The focus has shifted to a focus on personalization an patient- centricity, stakeholder integration and new value-based incentives. When healthcare executives truly align the three pillars and adopt IT as an enabler of a value-based reimbursement model, true integrated care delivery is achievable. WHAT ARE THE CHALLENGES FOR HOSPITALS WHEN ADOPTING VALUE-BASED HEALTHCARE?


Value-based healthcare could be the new treatment paradigm and economic model for healthcare in the future. With value-based treatment and management, the aim is to create an incentive structure in which hospitals are rewarded for creating quality and consistency and not for the actual amount of treatments performed, as most are today. Every healthcare organization needs to: WHAT ARE THE KEY OBJECTIVES FOR A HEALTHCARE CIO? - Create a value-based health system that is focused on shifting from sick care to healthcare with an emphasis on preventive care and population health management. - Align facilities, organizations, and information governance with a value-driven agenda. - Align financial incentives with reimbursement strategies and thereby move away from volume-based models to outcomes-based models. - Get patients to assume greater responsibility in managing their own health through a variety of consumer engagement initiatives. - Create an enabling IT platform based on 3rd-platform architecture and technologies.

IDC recommends that technology buyers should:

- Engage in discussions between executive healthcare leaders and CIOs on value-based business strategies. Define how personalization, integration, and value are important in the organization to establish specific value-based KPIs. - Explore and decide what value is for your healthcare organization — include patients and their perspectives. - Engage with IT and financial services at your healthcare organization to develop and implement IT to start monitoring the quality KPIs.

For more information about IDC´s research on value-based Healthcare, please email Jonas Knudsen at

- Digital Transformation in Healthcare: A Cross-Industry Perspective (IDC #EMEA42906617, August 2017) - IoT Platforms in Healthcare: A Fast-Evolving Market (IDC #EMEA42772917, June 2017) - The Pulse of IT in the European Healthcare Provider Sector: Key Deals and Initiatives, January–March 2017 (IDC #EMEA41112917, May 2017)

Jonas Knudsen Research Director, IDC Health Insights

IDC Health Insights EMEA @IDCInsightsEMEA | #IDCHI |

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