Value based service design and procurement model can create better impact of health and social care services

09.03.2015

Nordic countries today almost exclusively focus in their social and healthcare services on resources, production and output. Outcome and value are as concepts, however, starting to emerge as challengers. To support this need for systemic change the Nordic Innovation financed VABPRO-project has created a generic Value based service design and procurement model to help public providers improve the outcome of health and social care services. The model has been successfully tested within various Swedish and Finnish social and health care services.

NORDIC added value comes from understanding the user needs, measuring performance and paying for outcome and value

The VABPRO case studies show that Value based procurement models have the potential to significantly enhance quality of health and social care services beyond the impacts achieved with prevailing practices and reimbursement models. The main steps of the proposed model include; re-design of the services around user needs, setting clear and measurable impact objectives and metrics for the services, evaluating outcomes and incentivizing continuous improvement.

The aim is to move from price-driven procurement to a holistic approach that creates system level value and focuses also on prevention. Value based innovation should create following gains:

  • Win. 1: Cost-effective and high quality public services
  • Win. 2: Sustainable Service and Business models
  • Win. 3: Better user needs adopted timely services, incl. user empowerment and service adaptability

Future application possibilities of the VABPRO model are many

Value based approaches are implementable in most social and healthcare services. Setting clear objectives and metrics and measuring outcomes can also justify new and alternative investments. VABPRO approach could thus speed up deployment of integrated, user-centred care with innovative uses of ICT / eHealth. This is more likely to happen if the new solution is integrated into the existing or modified care processes.

Creating Nordic services and value

New integrated patient/user-centered services with incentive and reimbursement models that drive continuous improvement and benefits for all parties could become a new Nordic value proposition for international markets. To conclude the VABPRO-project leader Suzan Ikävalko encourages Nordic countries to jointly offer a development platform for value based services and to create a joint Nordic test market for integrated eHealth services.

VABPRO –project was carried out between March 2013 and December 2014.

The project was led by Nordic Healthcare Group (FI, SE) , with participation of Copenhagen Living Lab (DK), Norrbotten County Council (SE), City of Landskrona (SE), City of Espoo, City of Jyväskylä (FI) and Forum Virium Helsinki (FI).

For more information:
Suzan Ikävalko, Senior Associate, Nordic Healthcare Group (FI), suzan.ikavalko@nhg.fi
Fredrik Eklund, Director, Nordic Healthcare Group (SE), fredrik.eklund@nhg.se

Project final report available here:

vabpro