What's It Worth To You?

Last week, while attending the Fierce Biotech Summit in Boston, I had the opportunity to hear from incredible health leaders and innovators working tirelessly to advance patient care and improve our fragmented health ecosystem (which, as we all know, could use some help!). The talks were both educational and inspiring, though at times, a bit unsettling. While the scientific and technological advancements in the field are almost miraculous, the system through which they are delivered often prevents—or at least impedes—those who need them the most from accessing them.

There are many reasons for this (if only it were an easy fix...), but one issue that surfaced repeatedly during the sessions was the concept of value—and how differently it’s perceived/calculated by each of the parties involved. The reality is, we all value things differently based on our perspectives.

At its core, the idea of value can be boiled down to a simple formula: Value = What We Get - What We Pay (cost). The bigger the difference, the higher the value. However, unless we take into account all parts of this equation—especially the “what we get” side—we can’t calculate true value.

While solving the healthcare value conundrum in one blog post is impossible, I encourage everyone to broaden how they think about “what we get” when determining value for yourself, your business, and your family. Let’s break it down:

1. Revenue/Income.? Whether it’s personal income or business revenue, dollars matter. The more you earn, relative to “what you pay” (costs/expenses), the higher the perceived value. In healthcare, Bio/Pharma companies and insurance providers are often very focused on this number as they need to cover their costs and provide profit to their investors/shareholders.
2. Financial Savings. Value often comes in the form of savings. For example, if you buy a 5-pound package of chicken at Costco for $30 instead of five 1-pound packages at Star Market for $8 each ($40 total), you’d consider that a $10 savings. In healthcare, a $20/month subscription might prevent a $100,000 procedure (plus hospital stay, lost work time, etc.). That’s considerable value, right? Well, not necessarily for the hospital or physician that lost that $100,000 in potential revenue.
3. Life Impact.? Beyond money, how does a purchase impact your life? The value of a family trip to Disney World, for instance, can’t just be measured in dollars. Think about the value of having more quality time with family and friends thanks to better treatments or preventive care. Most parties will say this is important, but are they truly factoring that into the value equation? How much profit would they be willing to forego in exchange for lives saved?
4. Community Impact.? Value often extends beyond personal benefit. There’s value in the products, money, or resources a company provides to causes you care about. Brands like Tom's excel in this area and attain greater value because of it.? In healthcare, treatments and therapies can have the power to save entire communities or countries—but only if they’re accessible to them. Perhaps those who could afford to pay more would find value in helping those who can't.
5. Confidence.? We sometimes take it for granted, but there’s immense value in knowing the products we use are safe. Whether it’s the food we eat, the cars we drive, or the medications we take, we need confidence that they won’t harm us. Government regulations and safety standards help ensure this peace of mind. At what point does the cost of confidence outweigh what we get from it?

Ultimately, value is in the eye of the beholder. Of course, no matter how valuable something is, if you can’t afford it (“what you pay”), that value goes unrealized. For healthcare to be truly accessible, all parties involved must work together to ensure everyone can recognize the value being created by the leaders and innovators in the field. It’s certainly not as simple as it sounds, but given the advancements we've seen in treatments, I'm confident we can do the same for delivery.? In the meantime, I’ll keep shopping at Costco for my meat, poultry and paper goods!

As always, I hope you enjoyed this post. Please feel free to share it with others who might find it interesting, and share your thoughts here.

Until next time,

Jeff

PS.? Get inspired with my latest Brand Heart episode with Rob Liebreich, CEO of Goodwin Living, and learn how communities thrive when everyone supports and takes care of one another.