article thumbnail

How to Design a Bundled Payment Around Value

Harvard Business Review

The team has been meeting every two weeks over the past four months to design a BP model for a pilot project. The key elements of the project are the following: Defining the Bundle. The working team selected damage to rotator-cuff tendons as the clinical condition to be bundled.

article thumbnail

The Mayo Clinic Model for Running a Value-Improvement Program

Harvard Business Review

These efforts were part of the providers’ quest to increase the value of their care delivery — in other words, achieve better outcomes at the lowest-possible cost. The most successful implementations have had strong executive support, exceptional clinical leaders, and dedicated, multi-disciplinary project teams.

Mayo 8
article thumbnail

Case Study: When to Drop an Unprofitable Customer

Harvard Business Review

The lack of traceability and transparency extended to the costs for specialized equipment that was used only for particular products or customers. Tommy, an avid reader of the business literature, wanted Egan to adopt an activity-based costing , or ABC, approach. It should be to win in every one of our chosen markets.