What is a Value Proposition in Healthcare?
Demonstrating value to healthcare stakeholders has never been more important than it is today. Every decision in every market is dictated by value. If value is not otherwise demonstrated, then the basis of choice for the prescriber, patient and payer will default to price.
The aspiration for any healthcare brand is to demonstrate value. The difficulty is, as much as we try to rationalise it, “value” remains a subjective construct – it can mean different things at different times in different situations, to different people and different markets/global geographies.
Broadly speaking, in healthcare, value can be thought of as an equation. This being the sum of the benefits gained from adopting a product/technology minus the costs/efforts required to achieve them. Benefits are often considered in terms of ‘clinical efficacy’, ‘safety’ or ‘patient outcomes’ but may also address ‘utility’ within a given healthcare setting or wider outcomes associated with the health system (or even society) at large. Costs can be thought of holistically and go beyond the immediate cost of acquisition of the product and could include ‘associated resources’ of any type such as workforce burden or consequential costs to the health system.
All of these factors provide business teams with opportunities to define, reinforce and communicate a unique equation that explains how their proposition provides value to stakeholders in the health system in a way that competitors can’t match – the value proposition.