The Volume-to-Value Revolution

Health & Life Sciences

The Volume-to-Value Revolution

Rebuilding the DNA of Health from the Patient In

This inaugural report of the Oliver Wyman Health Innovation Center (OWHIC) explores the future of healthcare between now and 2025. It offers an overview of three major waves of innovation that over the next decade will bring us to a new patient-centered and value-based approach to healthcare delivery. This healthcare revolution will not only improve the quality of care and reduce its cost, it will also lead to a transformation of the field, as traditional providers and new entrants compete on cost and quality—and more than a trillion dollars in value shifts from old models to new.

In Focus

Volume-to-Value Revolution

The Volume-to-Value Revolution explores how the health marketplace will be redesigned from the patient’s perspective — with an unrelenting focus on improving patient value. Unlike any other industry, the healthcare market value equation is completely broke. Technology- powered businesses reduce costs by as much as 25 percent each year while tripling value every three years. Healthcare increases costs by 8 percent and reduces value by 10 percent a year. That dynamic needs to be reversed and Oliver Wyman research showcases the possibilities.

The first step toward change is to embrace population health, focusing on high-need and high-cost patient segments that represent the best opportunity to improve health and lower costs – then use those savings to generate resources to fund investment in coordination and prevention throughout the pyramid.

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