This figure represents the interrelatedness of the 3 pillars of Value in health care: evidence-based medicine, evidence-based economics, and quality improvement. Although all 3 carry an independent effect on Value, there is complex interaction between the 3 that can be leveraged to improve Value in health care.
The figure demonstrates combining the cost of a program and outcome (eg, health units). A, The light blue represents the total area of the cost of each of theoretical 3 health programs (P1, P2, P3) of $1.5 million dollars each. The dark blue represents the efficiency (eg, health units, life years, or quality adjusted life years). When combined together, the 3 programs yield 1.75 health units at an expenditure of $4.5 million dollars. B, Demonstrates an example when the least efficient program (eg, one that leads the least health for the amount of dollars spent: P1) is eliminated and the money is redistributed equally between the other 2 programs and obtain a higher return of health unit. Alternatively, one can choose to spend less money to earn the same amount of health as previously and redistribute the additional spending on other social goals.
The Value Equation is represented as Value = Outcome/Cost. The numerator (“Outcome”) includes components such as quality, efficacy, and safety, whereas the denominator (“Cost”) includes things such as resource tallies and actual dollars.