Creating and Managing Value: The Business Case for Quality

Value

Perceived Value (PV)

The Relative Value Theorem

The Relative Value Theorem

Definitions

Health Care Industry Stakeholders

Health Care Industry Stakeholders

Tiers

Health Care Industry Stakeholders

Revisiting the Scenario

James Deaux, PharmD vs Dr. Stein

What do you have to offer me that the other 99 applicants do not? What are you going to

do for me and The Ideal Hospital that should make me want to pay you $120,000/year?”

How should James respond…?

Obstacles to Developing a Business Case for Quality in the US Healthcare System:

Definitions

Is a Business Case Necessary for Every Health Care Intervention?

“The Purpose of Quality Improvement is to Achieve some Outcome(s)”

Business Case

Profit Terms

Profit Terms continued

Need for a Business Case for Quality in Pharmacy

Health Care Quality

Review of Assumptions about the Business Case for Quality

Competing with Quality:

“How can pharmacists use quality to increase their profits/ROI?”

Using Quality Improvement (QI) to increase ROI

3 Models Using QI to increase ROI

Deming’s Quality Chain Reaction:

Using QI to lower costs

Service-Profit Cycle:

Using QI to generate revenues

Service-Profit Cycle

Return on Quality (ROQ):

Using QI to lower costs and generate revenues

Competing with Quality Improvement

Building a Business Case for Pharmacy Quality

Barriers to Quality:

Problems Seen in Building a Business Case