When it comes to the meaning of “value” in healthcare, the perspective of the decision maker plays a significant role in determining how to measure that value.
For example, employers and insurance companies might have different ideas on what defines value in healthcare. While an employer might worry about days lost to illness, and how this affects productivity, insurance companies focus on costs of treatment or prescription drug costs. In an effort to measure direct health benefits, payers can be less concerned about things the patient may care about, such as the burden placed on families caring for the sick.
Darius Lakdawalla, Ph.D., discusses the meaning and measure of value in healthcare. Watch the interview here.