Marketing with a Value-Based Healthcare Delivery Model

Jun. 26, 2018

Tips to keep your healthcare marketing aligned

Value-based vs. Fee-for-service

Value-based healthcare is a delivery model in which providers, including hospitals and physicians, are paid based on patient health outcomes. Under value-based healthcare agreements, providers are rewarded for helping patients improve their health, reduce the effects and incidence of chronic disease, and live healthier lives.

Value-based healthcare differs from a fee-for-service approach, in which providers are paid based on the amount of healthcare services they deliver. The “value” in value-based healthcare is derived from measuring health outcomes against the cost of delivering the outcomes.

So why shouldn’t the effectiveness of marketing also be based on outcomes?

Why value-based marketing?

In applying this concept, marketing success is based on results such as increases in volumes or market share. Using a population health approach, we assess desired outcomes by the number of potential patients who received a screening or saw a primary care provider. This may seem like common sense, however, reflect on the number of ads your organization places based on the impulses and reactions of marketing committees, instead of the true measurement being based on the actual value provided by your efforts.

The benefits of a value-based healthcare system extend to patients and providers. 

  • Patients spend less money to achieve better healthManaging a chronic disease or condition like cancer, diabetes, high blood pressure, COPD, or obesity can be costly and time-consuming for patients. Value-based care models focus on helping patients recover from illnesses and injuries more quickly and avoid chronic disease in the first place. As a result, patients face fewer doctor’s visits, medical tests, and procedures, and they spend less money on prescription medication as both near-term and long-term health improve.
  • Providers achieve efficiencies and greater patient satisfaction. While providers may need to spend more time on new, prevention-based patient services, they will spend less time on chronic disease management. Quality and patient engagement measures increase when the focus is on value instead of volume. 

As you’re determining marketing value in an evidence-based way—just as our providers do in value-based care—base your goals on specific measures such as patients effected, revenue goals, and changes in procedure volumes. It is also critical to form your priorities on specific criteria to determine where and how to place your resources.

  • Does the initiative match your strategic plan?
  • Does the marketing approach support your value-based approach to patient care?
  • Are you encouraging patient choices that promote healthier lifestyles?

As we prepare marketing plans for our clients, we use a service line prioritization tool developed by Legato Healthcare Marketing. This guides our clients and helps them stay disciplined in their approach. In doing so, it helps prevent them from being swayed by internal pressures of well-meaning board members or physician leaders.

Final note: Keep your message aligned with your value-based approach

For example, yes, we’re proud to have that new 3D mammography equipment, however, just as we do in patient care, let’s put ourselves in the shoes of our patient.

  • Why is this technology important to patient care and prevention?
  • What actions do we encourage our patients to take?
  • Are we discussing their care, or our services?
  • What value does our care, and equipment, offer to our patient’s health? 

To receive your FREE copy of Legato's Service Line Prioritization Tool, email Mike Milligan, Legato President at!

Website by: Craig Erskine

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