- Author
- Peter C Smith
- Date published
- September 2009
- Pages
- 53
- ISBN
- 978-1-906461-11-9
- Download publication [400kb PDF]
Background
The pursuit of value for money has become the holy grail of health systems worldwide and has been made strikingly more urgent by the economic downturn. At its most basic, the concept of value for money is straightforward: it represents the ratio of some measure of valued health system outputs to the associated expenditure. Whilst this is a worthy goal the measurement and methodology of value for money is a hugely contested field.
About this report
In this report, Professor Peter Smith from the University of York describes the various concepts of value for money in common use. He examines how measures of value for money are constructed, discusses the challenges inherent in measuring value for money, and assesses the priorities for future efforts in this domain. Professor Smith advocates a comprehensive approach to measuring value for money, outlining the associated benefits to performance measurement and accountability.
There are obvious advantages to policy makers, managers and clinical leaders, and academics in pursuing a comprehensive assessment of value for money. But they face significant challenges in integrating value for money into decision making, commissioning and research. Professor Smith calls for rapid advancement in the science of measuring value for money so that the debate is not simply informed by expenditure but by a comprehensive assessment of all the diverse objectives of health systems.
We believe Professor Smith helps to demystify a particularly complex issue and we strongly endorse his approach and his recommendations. The Health Foundation is committed to making sure that the quality agenda is not sidelined because of the economic downturn. In publishing this report, we are calling for value for money, not just the monetary cost to be at the heart of the quality debate.
Who should read this report
This report is intended for healthcare decision makers, including policy makers and managers.They should use this independent source of evidence to inform decisions and take actions that will lead to better quality of patient care.
