Value-Based Healthcare is where outcomes are improved through a focus on value.

The Triple Value Model

  • Allocative value – determined by how assets are allocated to different subgroups of the population,

  • Technical value – determined by how well resources are used for each subgroup,

  • Personal value – the delivery of services informed by what matters to the individual.

Three functions, in addition to the traditional functions of healthcare systems, are necessary to achieve Triple Value:

  • Empowerment of patients by knowledge: ensuring that every individual receives full information about the risks and benefits of the intervention being offered – to ensure high personal value,
  • Shifting resources – at the programme, system, and treatment level : when there is evidence of unwarranted variation, it is necessary to transfer investments from budgets where there is lower value or overuse, to budgets where there is evidence of higher value or underuse in order to increase allocative value,
  • Appropriate service access: Ensuring that those people in the population who will derive most value from a service reach that service. This minimises overuse, underuse and inequity, and increases technical value of the healthcare system.

This new agenda requires new skills and new organisational forms – and particularly a regard for the importance of
systems and culture.