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Rational Healthcare Value Network Cheat Sheet (DRAFT) by [deleted]

Rational Healthcare Value Network

This is a draft cheat sheet. It is a work in progress and is not finished yet.


A value network is a marketing concept that describes the social and technical resources (supply chain) within and between busine­sses. They account for the overall worth of products and services, including the collection of upstream suppliers, downstream channels to market, and ancillary services that support a common business model within an industry. The kind of value network that the healthcare system needs focuses on bringing increased value to healthcare patient (consumer) and reward providers for delivering high-value care.

1. The Geen Box

The green box refers to three types of data required to build the inform­ation and knowledge people need for increasing value across the supply chain. The education data refers to formal and informal ways that people share their knowledge, ideas, and experi­ences. Research data, on the other hand, is used in controlled clinical trials, outcomes and perfor­mance studies, various types of biosur­vei­llance (e.g., post-m­arket drug and device, public health), preferred clinical guideline develo­pment, and other types of research. Technology data refers to the date collected by EHRs and other health IT tools, as well as streamed through durable medical equipment.

2. The 5 Blue Box

The five blue boxes refer the transf­orm­ation of the data using a variety of HIT tools and clinical processes that promote the kinds of knowledge and unders­tanding that fosters more effective and efficient care (services and products). They include
(a) use of eviden­ce-­based guidel­ines, person­alized care plans, decision support tools, and commun­ication networks;
(b) methods of inform­ation sharing and care coordi­nation; and
(c) patient empowe­rment.

Each activity (process) in the blue boxes supports value by requiring quality handoffs and continuous measur­ement, assess­ment, feedback and acceptance at each breakpoint (the gap between each activity) to ensure value creation via continuous quality improv­ement (CQI).

3. The Red Box

The red box on the bottom refers to the techno­log­ical, psycho­log­ical, economic, and regulatory factors that promote or inhibit value to patient by influe­ncing (driving or impeding) the blue box processes. Some of the key influences are listed in the box.

Value Netwot

4. The Purple Box

The purple box represents good patient outcomes; it is the desired result of using the data, tools and processes to increase value to the patient. The curved purple arrow pointing to the Data Types box indicates the need to provide data about the process, influences and outcomes of care across the entire supply chain via continuous feedback loops. The blue box activities and their related influences that help achieve the goal of higher quality at lower cost are reinfo­rced; those that do not are modified or elimin­ated.

Leveraging health IT

Leveraging health IT to promote value through CQI is a strategy that focuses on (a) learning from our past, current and futures practices to determine what results in the best outcomes at reasonable cost and (b) transf­orming this knowledge into high-value health­care. This solution fosters greater care quality and afford­ability through:
(a) use of approp­riate eviden­ce-­based guidelines and lessons learned;
(b) implem­ent­ation of person­alized care plans and decision support tools;
(c) inform­ation sharing among collab­orative teams in social and technology networks;
(d) informed decisi­on-­making; and
(e) fostering patient compliance and respon­sible behavioral choices.

The CQI solution

This CQI solution does not strive for zero defects (no errors of omission and commis­sion) because perfection assumes infinite resources and knowledge, both of which are unreal­istic. Instead, it is based on the Michael Porter’s value chain model, which assumes defects (errors) will occur and, therefore, we had better accept some reasonable level of tolerance, reconcile mistakes and poor outcomes, and strive to ensure ever-b­etter outcomes at reasonable cost for a given condition.