Value Based Healthcare

My reflections on how Value Based Healthcare (VBH) can help in the NHS, learning from 美国哈佛商学院 and how Gen AI maybe able to help, as we reimagine healthcare.

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We know that NHS trusts are facing significant cost pressures and need to rapidly deliver savings to meet latest demands. Targets can vary from 2% at Trust level to as high as 30% for ICBs. This is set against a backdrop of high operational pressures, strikes and a workforce worn out from the impact of the Covid pandemic.

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Traditional financial recovery and salami-slicing is a risk to patient care and, in a post-pandemic world, with a workforce challenge and almost 8m people on the elective waiting list in the UK, it’s not a viable solution. Our value based healthcare approach is a sustainable approach to financial savings. We can work with you to reimagine the way in which you deliver healthcare, to drive significant, sustainable savings and better deploy resources to direct patient care. We help you get results by ensuring there is a laser-focus on using data and technology. Where appropriate, we know AI can help free up admin time for clinicians and drive increased benefits too.

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Why are we so confident we can help in a different way…?

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Our Global Health Team brings a breadth of experience; working in government-funded healthcare across 23 countries with c25,000 people. This is paired with a depth of experience in cost reduction and productivity. We have worked with a range of public and private sector organisations to drive data-driven efficiency programmes which typically yield 7-15% productivity gains. Examples include:

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-????????? UK Department for Work and Pensions - enabling c.￡65m OpEx savings over 3 years through reimagining the way they work

-????????? Austrian Hospital Network – €160m of savings across realised across a network of 11 hospitals and 12 primary care providers

-????????? US based healthcare providers – inc. significant savings for a government national health insurance program

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As well as these examples, we work closely with a range of NHS trusts and NHSE helping to drive their data and cost savings agenda. Whilst we don’t believe in quick wins, our most recent analysis shows that that Trusts on average have c ￡5m of excess stock post-covid peak which could be an initial target area?

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Pace is everything. We have an initial ‘insights into action’ offer to get started, which runs alongside a strategic approach to identify costs in pods and consider the value levers to reimagine work in a systematic way.

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I was fortunate just before Christmas to listen to Susanna Gallani from the Harvard Business School on the academic basis behind VBH. I expect all sounds quite sensible?

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Strategic Agenda for Value-Based Health Care

1. Re-organise care around patient conditions covering the full cycle of care

2. Measure outcomes and costs at the patient level

3. Integrate and coordinate care

4. Build information systems to collect, store, and share relevant information to support patient care

5. Align the incentive systems with the delivery of value

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Some great case studies Susanna shared included e.g. from Karolinska University Hospital where there is a genuine focus on measuring outcomes and costs….VBH is proven to work in healthcare.

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Workforce is of course always c 70-80% of the cost base of the NHS. So how can we really reduce costs when we know most services are short of people? A fair question. Can Gen AI really help?

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Global labour shortage; the analysis – we know we can’t fund or train enough people to fill the gap so how do we remove admin tasks and do things more efficiently, whilst also reducing costs? We need a human to make a clinical decision and hold your hand when needed, but Gen AI can help….. analysis shows 20-40% of tasks in healthcare could benefit from automation or augmentation. Near-term applications of Gen AI to healthcare tasks can balance attainable real-world benefits with patient safety.

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Where to apply GenAI Automation: You can leverage Gen AI to automate low-risk, rote tasks that meet strict criteria.

Where to explore GenAI Augmentation: You can empower the workforce with Gen AI augmentation and embed human oversight where appropriate.

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In summary. Value Based Healthcare isn’t new but is growing in profile post-covid and proven to work, to ensure we are focusing on patient access, experience and outcomes within budget constraints. Gen AI won’t have all the answers but will help us with the global labour shortage and ensure our healthcare resource is most focused on human decision making and holding your hand when you need it, tech can’t do that!

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We’d love the chance to chat this through. Kavita Gnanaolivu is a clinician and accountant in our team who has delivered this before. Cerys Anthony is leading our global work in cost reduction with stimulating examples on where this delivers. Personally, I’ve worked at Board level in the NHS so understand the realities and I have delivered these cost and productivity programmes successfully in several Trusts and ICBs in my consulting roles.

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Please do reach out to myself or Andreas Haimb?ck-Tichy .

埃森哲 Ashish Goel Shashii I Asnaani Jonathan Keane Luke Mills Kristin Ficery Chris Roark Kaveh Safavi Rich Birhanzel Andrew Truscott Guy Player Ellen Kapochkin Brian Kalis

#HumanisingHealthcare #Reimagining Healthcare #Healthcare #Strategy #Consulting

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