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Value-based healthcare: shifting from volume to value

Published on June 30, 2026   16 min

A selection of talks on Management, Leadership & Organisation

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0:00
Hello and welcome. My name is Dr. Benedikt Langenberger. I'm a postdoctoral researcher at the Hasso Plattner Institute in Potsdam, Germany. Today, I will talk to you about Value-Based Healthcare: Shifting from Volume to Value.
0:19
I will start with where we currently stand. In healthcare, we have established reimbursement schemes; for example, fee-for-service systems that reward volume but not necessarily outcomes. However, as economists, we do know incentives really matter. If you want to achieve good outcomes, you must set the incentives right. The result of the current incentives in healthcare is often an increase in service volume, but unfortunately, also in healthcare costs. This often leads to a mismatch between outcomes and costs, where increased health expenses are not always associated with improved outcomes. As decision makers in healthcare, our goal should be to improve outcomes while containing the costs.
1:10
Nowadays, everybody talks about value. But how do we actually define it? The concept of value-based healthcare was invented in 2006, by Harvard Business School Prof. Michael Porter, and his colleague Elizabeth Teisberg, in the publication: Redefining Healthcare: Creating Value-Based Competition on Results. Michael Porter says, "Health outcomes achieved per dollar spent," this is how we define value. We can write it as a simple equation, mainly outcomes over costs. But what do we mean with outcomes? We mean outcomes that actually do matter to patients.

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Value-based healthcare: shifting from volume to value

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