Why volume vs. value is a faulty equation

"Everyone is focused on the question of value. Is growth being forgotten as an important strategic focus in health system strategy?" said Luke Peterson, a partner with Health System Advisors.

At the Becker's Hospital Review 6th Annual Meeting, Mr. Peterson and Tim Sayler, COO of Essentia Health West, based in Duluth, Minn., explored the interplay between volume and value into today's healthcare landscape. Often these two concepts are placed in opposition to one another, but in reality the two can exist in harmony. "If you are providing the best value and you're not growing, is that value actually relevant? Efficiency, quality and competency result in market preference," said Mr. Peterson.

While the definition of value may vary slightly from provider to provider, truly relevant value will result in growth. At Essentia Health the triple aim has been to improve population health, enhance patient experience and lower per capita cost. These three goals work together to drive both volume and value.

"To build preference and relevance we need to choose high impact areas and create center of excellence," said Mr. Sayler. The three service lines leading Essentia's growth and provider coordination are cardiovascular, neurosciences and women's services. Other high impact service lines providers can consider to increase care coordination and attract new patients include:

•    Orthopedics
•    Spine
•    Oncology

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