Why Does It Matter?
The Centers for Medicare and Medicaid Services (CMS) has introduced Value-Based Purchasing as a new policy initiative “to drive improvements in clinical quality, patient-centeredness and efficiency” in hospitals. CMS’s goal is to “transform Medicare from a passive payer of claims to an active purchaser of care.” At the same time, healthcare consumers shoulder an increasing burden of the cost of healthcare, of which hospital services is a large part.
In Value-Based Purchasing, hospitals will ultimately be judged, and in some cases reimbursed, based on the overall value that they deliver. The Hospital Value Index™ is the first-ever benchmark to analyze these components to help hospitals understand their value proposition. To prepare for Value-Based Purchasing and other similar programs, it is essential for hospitals to understand the areas in which improvements are needed.
At the same time, the Hospital Value Index™ is designed to help consumers identify and recognize those hospitals that deliver outstanding value. Like all consumer experiences, value in healthcare is the sum of experiences related to the service or product, including process, customer experience, reputation, price and convenience. Healthcare consumers are increasingly making purchasing decisions based on these factors, and hospitals that are “Best in Value” will ultimately be rewarded with more business.
Through the Hospital Value Index™, hospitals are able to measure their ability to provide quality care at the lowest price. By measuring the value of hospitals, consumers are able to find the provider that gives them the highest quality care for the least amount of money.
For Consumers
It’s no secret that consumers are increasingly taking on the burden of healthcare costs, and as a result, they are becoming more active when choosing their healthcare providers. Today’s consumers want to know not only where they can get the highest quality of care for their money, but also how to evaluate the reputation of the hospital and whether past experiences have been satisfactory.
The Centers for Medicare and Medicaid Services (CMS) requires hospitals to survey patients about their experience in a hospital. Of course, what patients experience on their own is often different than what consumers think about the hospitals in their city. The Hospital Value Index™ recognizes this distinction and includes both consumer experience and consumer perception in identifying hospitals that deliver good value.
The Hospital Value Index™ provides consumers a source to find this information and, as a result, empowers healthcare consumers to make the best decision regarding their own health and the care of their loved ones.
For Hospitals
The Hospital Value Index™ enables each stakeholder in the healthcare system to compare the value of hospitals in a comprehensive way. In today’s marketplace, no hospital leader can afford to focus on a single measurement. The Hospital Value Index™ provides hospital executives with an all-encompassing score for their community and their organization – where it excels and where it can improve against its peers.
For Marketing Professionals
The Hospital Value Index™ is designed to identify and recognize those hospitals that deliver outstanding value. Healthcare consumers are increasingly making purchasing decisions based on these factors, and hospitals that are “Best in Value” will ultimately be rewarded with more business. Data Advantage encourages hospitals included in the 2009-2010 Hospital Value Index™ study to share their results within their hospital and communities.
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