Healthcare value chain

The healthcare value chain could evolve to include providers of alternative medicine. People are increasingly revealing their preference for the integration of eastern and western medicine, and other alternative therapies such as the practice of acuptmcture and yoga. Spending in complementary and alternative medicine in US exceeded 27 bilhon in 1997 and US 20.3 billion in Japan in 2004 (Adams et al. 2008). The Japanese market is expected to exceed US 43.1 billion in 2013. 

At the heart of most DM initiatives is a redefined relationship with the pharmaceutical industry. The pharma-company becomes the predominant partner in providing care, instead of merely providing the components of it, such as pharmaceutical products, drugs and the like. The relationship between the British NHS and pharmaceutical companies has never been really close in the same way that non-healthcare private sector manufacturers and service providers get close to their suppliers and see them as part of the value chain. 

Before exploring the capabilities of the value chain model in the healthcare context, we should discuss the importance of establishing a workable view of value. 

In relation to healthcare, the nohon of the value proposihon is concerned with satisfying patient expectahons, making explicit the roles of partners, and establishing the credibility of the value chain entity (the connected healthcare system). 

The overwhelming benefit offered by the value chain approach is its ability to offer management the facility to consider alternative ways and means of creating value. Is healthcare in any way different Clearly the answer is no. Patients are customers. They have value needs, which are met by specific resources and services. Healthcare has marketing channels and has specialist partnership infrastructures that deliver value (or treatment services). Healthcare managers should be mindful of the fact that they should, and can, identify alternatives to meet patient needs and take into account the alternative combinations of performance, cost, and time requirements and select the relevant suppliers to affect an appropriate value-delivery system. 

Providing conununications and interactions facilities in healthcare by (a) using eHealth information technology and (b) using a value chain approach to healthcare value delivery. 

Finally we offer a hypothetical eHealth value chain model in Figure 16.6. While it is hypothetical, it serves to demonstrate how an eHealth ICT model can coordinate and integrate healthcare delivery by offering a template for future work. 

IMS Institute for Healthcare Informatics (2014) Understanding the pharmaceuticals value chain. Available from http //www.imshealth.eom/vgn-ext-templating/v/ index.]sp vgnextoid=a64de5fda6370410VgnVCM10000076192ca2RCRD vg nextchannel=a64de5fda6370410VgnVCM10000076192ca2RCRD [accessed 3 May 2015]. 

---