🚨 Value-Based Healthcare is the Biggest Scam in Modern Medicine For over a decade, consultants, policymakers, and hospital boards have sold us the dream of “Value-Based Healthcare (VBHC)” — a utopian model where patients get better outcomes for lower costs, providers are rewarded for efficiency, and the entire system magically balances compassion with capitalism. Sounds noble, doesn’t it? Here’s the problem: it’s a hoax. 🔹 1. “Value” Was Never About Patients Michael Porter’s famous equation (value = outcomes / cost) looks neat on a whiteboard. But in the real world: Outcomes are impossible to standardize across patients. Costs are defined by hospital accountants, not by the biology of healing. What gets called “value” is usually just cost-cutting disguised as reform. 🔹 2. The ICHOM Failure No One Talks About Remember the International Consortium for Health Outcomes Measurement (ICHOM)? It promised to define standardized outcomes for every condition — hip replacement, cataracts, heart failure. Reality check: it failed. Why? Because the human body does not follow spreadsheets. A stent in 100 patients = 100 different recoveries. A hip replacement in a 45-year-old marathoner ≠ in a 75-year-old diabetic. The dream of universal outcome comparability collapsed under biological complexity. 🔹 3. Outcomes Can’t Be Predicted Healthcare isn’t car manufacturing. In Toyota’s factory, the same robot weld produces the same car door. In medicine, the same surgery or drug can mean: Full recovery for one patient. Permanent disability for another. Death for a third. Yet VBHC ties money to outcomes, punishing providers for variability of nature itself. 🔹 4. Who Really Benefits? Let’s be blunt: not the patient, not the frontline doctor. Insurers capture the financial upside. Consultants build endless dashboards. Administrators chase KPIs and bonuses. Doctors are pressured to do more with less. Patients experience rationed time, rationed care, rationed empathy. VBHC has become a Trojan horse for financial engineering, not a patient-first revolution. 🔹 5. The Ethical Trap By chasing “value contracts,” hospitals increasingly: Cherry-pick “easy” patients. Avoid complex, elderly, or socioeconomically disadvantaged patients. Document for metrics instead of delivering care. That’s not medicine. That’s market gaming. ⚡ The Bottom Line Value-Based Healthcare isn’t failing because it’s misunderstood. It’s failing because it was never built for the biology of real patients. It was built for spreadsheets, contracts, and quarterly boardroom wins. The human body doesn’t fit into PowerPoint. And it never will. 🔥 Controversial Takeaway: Until we admit VBHC is a scam dressed as innovation, healthcare leaders will keep chasing illusions while patients keep paying the price. 👉 Question for my network: Do you think VBHC can ever be salvaged — or should we finally admit it’s a failed experiment and start building something truly patient-centered? COFLET Empathify
Dr. Tapan Shaah I agree that listening doesn't mean dialogue,but it's a start Solutions need to start somewhere!! Please do see our efforts to create patient voice in research in India through PACER https://pacercankidsindia.org
VBHC remains argumentative in most health policy schools, the proposed perspective here is yet very narrow. Outcomes were never predictive on the contrary they are all retrospective measurements, that mostly value the patient reported outcomes, patient experience outcomes and not only the clinical outcomes. Theoretically the 3 outcome types need to be accommodated in measuring performance and not only one or two. For that I rather see ICHOM as an organization who provide tools in scientific way and not drafting hypotheses. The only point that I would agree with you is the ethical trap. However the argument here will definitely lead to universal coverage vs private insurance ever existing topic of discussion. The implementation of VBHC is never complete anywhere and that because it requires an infrastructural transformation that many countries cannot yet afford whereas, payment models dramatically diverse among applications.
It’s certainly an eye-opener in highlighting how standardization can reduce costs related to operational inefficiencies and system misuse. However, I remain cautious about its potential for tangible, long-term success. While the concept is gaining traction globally and may well drive some positive change it cannot be left solely in the hands of policymakers and business leaders. Without balanced involvement from clinicians, quality professionals, and patient advocates, the approach risks creating unintended consequences that could undermine its core intent.
Absolute nonsense. We at Right Health are able to provide Quality Healthcare at Affordable Costs and easily Accessible. Our model is successful here in UAE, with daily 4000 patients. Yes, we dont push our Doctors for increase in Revenue. Our cost per episode is just 100 Aed, excluding Chronic Medication. Lab and prescription is only what is needed. Not like corporate Healthcare providers, unethical battery of tests.
Dr. Tapan Shah, intriguing post exposing the gaps of VBHC. The model doesn't account for interpersonal variables in the patient groups. Sound knowledge about prognostic criterion, cohort grouping, allocating space for comorbidities and realistic goal setting for staged outcomes can lead to massive improvements in the model. We all will have to come up with an all inclusive, refurbished model. Until then it's a mirage...
Appreciate the post sir. Mind blowing. Values guide our systems, so value based healthcare should have been the ideal. But development of new terms and ideas have corrupted the whole plan. Profit- whose profit is it? Is the patient benefiting? Or is it the doctors ? Or the management? No, single entity seems to benefit from the system in group! Next we go towards economy of scales! Easy cases/complicated cases/many cases? To benefit the patients monetarily or the bargain to prevent exorbitant prices, we have the medical insurance shooting. What has the mediclaim highjacked the whole system? How will the Quality work ? quality comes with the cost? But who pays the cost 🌟 To declare any system worthless, is easy! Value comes to make the system work and enable the benefits to be passed over to the fraternity.
💬 A nuanced take — and a much-needed conversation. You’re absolutely right that many implementations of Value-Based Healthcare (VBHC) have strayed from their original patient-centered ideals. Tying reimbursement to outcomes without accounting for clinical variability, socioeconomic factors, or biological complexity has indeed led to unintended distortions — cherry-picking patients, gaming metrics, and clinician burnout. However, I wouldn’t write off the concept entirely. ✅ The Intent Behind VBHC Is Still Sound The idea that healthcare should focus on outcomes that matter to patients (not just processes) is a step in the right direction. But we need more realistic definitions of “value”, tailored by context — not just top-down metrics or dashboard logic. 🔍 Execution, Not the Idea, Might Be the Flaw Many VBHC programs are designed by consultants far removed from the bedside. When frontline clinicians, patients, and health systems co-design value metrics, the results can be more meaningful. The problem is not “value” — it’s who defines it, and how rigidly it’s enforced.
Agree. Article is informative and an eye opener. So what is the solution do we have ?
Dr. Tapan Shaah A bold and necessary perspective. The danger with VBHC is that it tries to reduce the irreducible, the uniqueness of every patient. Maybe instead of chasing “value equations,” the future lies in models that measure trust, safety, and continuity of care, not just costs and outcomes.
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2wThought provoking insights Dr. Tapan Shaah. In Indian healthcare industry we eulogise, ad nauseam, the virtues of VBHC in all our academic and intellectual discourses. We need to learn a lot in our journey towards Universal Health Coverage or in further expansion of scale and scope of Ayushman Bharat!