News / Kaplan outlines value components

Healthcare Costing for Value Institute’s launch event is in April.

The internationally recognised value expert has collaborated with fellow Harvard professor Michael Porter to promote a focus on delivering value underpinned by time-based activity-based costing.

Speaking via a video link, Professor Kaplan said that many of the benefits of value were achieved by examining outcomes, costs and opportunities for service improvement at medical condition level. ‘But if you don’t change the payment system to align with value, you won’t get all the benefits that you can get.’

The new Healthcare Costing for Value Institute has been set up to support organisations move towards value-based decision making, taking account of both outcomes and costs.

This support will cover the development of robust patient-level costs as a fundamental building block for value as well as showcasing emerging practical approaches to using value as the basis for decision-making.

The masterclass was also addressed by James Duncan, deputy chief executive of Northumberland Tyne and Wear NHS Foundation Trust.

He told the audience that pricing systems needed to incentivise quality improvement, innovation and stretch. ‘Getting transparency makes sense,’ he said, ‘having a common way to understand the needs, resources and outcomes that enable us to see what that looks like across the country and your own organisations.’

Nearly 100 organisations have already joined the institute and 60 members attended the inaugural masterclass.