Although defining the value of healthcare services is hard, healthcare services are undeniably crucial in modern integrative and dynamic society. Consensus on the effective means of measuring these services has still not been attained despite being one of the most valuable services in the society. Limited studies on healthcare services are largely brought about by the emotive nature of the topic and lack of an effective and reliable means of measuring the value of healthcare services. Empirical evidence from various healthcare professionals confirms that the value of any healthcare services is determined by the system nature of healthcare. The system nature of healthcare is the manners in which services are provided in any healthcare system with an aim of meeting healthcare demands of the entire population (Robin, 2010).
Organisation structure and communication channels in a healthcare setting are also some of the parameters used to describe the system nature of healthcare. The understanding of the system nature of healthcare does not only help in advancing the system efficiency but also in accessing the productivity and the quality of services offered in healthcare settings. Furthermore, system nature of healthcare is instrumental in affecting the value estimate (Kind, Lafata, Matuszewski, & Raisch, 2009). The command structure in the healthcare setting is relative influential in affecting the value estimate. In most instances, the organisation structure largely influence communication in an organisation vital in influencing value estimate. Evaluators in any healthcare settings also rely on system nature of healthcare in estimating the value of products and services that are offered in any healthcare settings (Devlin & David, 2004).
Changes and innovation in system nature of healthcare is also of critical important in facilitating the estimation of the value of any healthcare system. The documentation system in health care systems does not only help in understanding the health history of a society, but it is also of critical importance in affecting the value estimation. The adoption of modern innovation and technology in the healthcare system is also useful in determining the technique used in estimating the value of the services offered in any healthcare setting.
The benefit cost is the analysis of the cost of cure by considering both the numerator value and denominator value. In this analysis, the denominator value describes the willingness of the patient to pay for the cost of receiving health treatment. On the other hand, the numerator value is the expected expenses incurred in treating a specified healthcare complication. In most instances, patients do not have the willingness of expensing for their healthcare treatment. Failure to facilitate for healthcare treatment in most cases results to reduction in the value of services offered in healthcare systems. Cost utility analysis is a form of decision analysis that produces results where the cost is at numerator. This form of analysis also has a unique measure of effective that is described as Quality Adjusted Life Year (Jonas & Mattias, 2011). The Quality Adjusted Life Year is in most cases noted in the denominator of the analysis. Based on the available information, this analysis is one of the most effective means of assessing the performance of less developed healthcare institutions in modern healthcare institutions.
The cost-effectiveness is a form of decision analysis model that produces results where the cost incurred in taking care of healthcare challenge is represented in the numerator and the effectiveness of the services is indicated in the denominator. This form of analysis is also timely and cost effective as compared to other evaluation means. This analysis is the most effective means of understanding both individual performance and the performance of the entire healthcare entity. In most cases, this analysis is applicable when healthcare system intends to take annual evaluation of their performance. The analysis is also not only effective in evaluating organisation and individual performance, but it is vital in offering recommendation for future changes and expansion. Compared to other analysis methods, cost effective is the most effective mechanism of assessing performance of modern healthcare institutions (Johannesson, 1995).
IM/IT investment application is a modern innovation that has resulted to significant changes in healthcare systems and other business institutions. The innovation has also been linked to the current development and improvement in healthcare services. IM/IT investment application has a vital influence on the nature and quality of the value determination. Through effective utilisation of IM/IT investment application, the quality of value determination in modern health institutions has witnessed radical transformation. The value determination has also been timely and in accordance to their intended goals and objective (Hammitt & Robinson, 2011). The innovation has also changed the nature of value determination by reducing the amount of time and resources that are required in undertaking the evaluation. IM/IT investment application has also facilitated the incorporation of views and contribution of all actors in healthcare settings. All factors that are vital in facilitating effective value determination are also through integrated in the system. Therefore, compared to convention means of value determination, IM/IT investment application is more effective and appropriate.
References
Devlin, N., & David Parkin (2004). Does NICE have a cost-effectiveness threshold and what other factors influence its decisions? A binary choice analysis (PDF). Health Economics, 13 (5), 437–52
Hammitt J. & Robinson L. (2011). The Income Elasticity of the Value per Statistical Life: Transferring Estimates between High and Low Income Populations, Journal of Benefit-Cost Analysis, 2(1), 1-29
Johannesson, M., (1995). The relationship between cost-effectiveness analysis and cost- benefit analysis, Social Science & Medicine, Elsevier, 41(4), 483-489
Jonas E. & Mattias L. (2011). Do Cost--Benefit Analyses Influence Transport Investment Decisions? Experiences from the Swedish Transport Investment Plan 2010—21, Taylor and Francis Journals, 32(1), 29-48
Kind, P.; Lafata, J. E., Matuszewski, K., & Raisch, D. (2009). The use of QALYs in clinical and patient decision-making: Issues and prospects. Value in Health 12 (1), 27–30
Robin B., (2010). Efficiency and Redistribution: An Evaluative Review of Louis Kaplow's The Theory of Taxation and Public Economics, Journal of Economic Literature American Economic Association, 48(4), 964-979
