Anil Nair, CEO, St Jude India Childcare Centres highlights that when applied to cancer care, the Value-Based Healthcare approach encompasses not just the primary treatment but also the accompanying services, like preventive care, rehabilitation, and end-of-life care, thus integrating a comprehensive care pathway
The escalation of cancer care costs globally, particularly in developing countries like India, has intensified the need to explore Value-Based Healthcare (VBHC) models. Unlike fee-for-service models that prioritize volume over quality, VBHC techniques focus on the long-term, holistic care of patients. They aim to improve treatment outcomes while minimising costs—an approach increasingly critical for addressing the growing burden of cancer care.
Understanding VBHC in cancer care
VBHC seeks to enhance healthcare delivery by aligning the costs with patient outcomes. The principal goal is to attain optimal health results at lower costs, targeting enhanced patient satisfaction, improved survival rates, minimised side effects, and better quality of life. When applied to cancer care, the VBHC approach encompasses not just the primary treatment but also the accompanying services, like preventive care, rehabilitation, and end-of-life care, thus integrating a comprehensive care pathway.
Techniques such as bundled payments, outcome-based contracts, and shared savings programs are hallmarks of the VBHC approach in cancer care. These methods create an incentive for healthcare providers to invest in preventive and early detection strategies, innovative treatments, and meticulous follow-up care, ensuring improved health outcomes and reducing the overall cost of care.
VBHC in India: A path towards inclusive cancer care
India has a unique challenge in managing cancer care due to its large population and socioeconomic disparities. A significant proportion of patients hail from marginalised communities and travel great distances to access care. They have minimal resources and are often diagnosed at advanced stages of cancer, necessitating complex and costly treatments. Cancer treatment in India can cost up to Rs 90 000 to Rs 28,00,000 depending upon the type, stage, complexity, age, medical issues, and overall health.
In such a context, implementing a VBHC model becomes imperative. It can drive the provision of affordable and efficient care that is sensitive to patients’ needs, reducing the economic strain on families and society. Cancer hospitals can form networks with primary care clinics and health centers to create a seamless care continuum. This integration ensures that even patients from remote areas receive early diagnosis and prompt, appropriate treatment, improving survival rates and reducing the long-term costs associated with advanced-stage care.
Additionally, adopting digital health technologies can support VBHC initiatives in cancer care. Telemedicine, artificial intelligence, and data analytics can aid in early detection, personalised treatment planning, and continuous monitoring of patient health status, reducing the need for patients to travel frequently and thereby lowering overall healthcare costs.
VBHC from a business standpoint
For businesses in healthcare, adopting a VBHC model for cancer care can offer significant benefits. From a B2B perspective, providers of primary care (medical treatments) and secondary care (supportive services such as rehabilitation, palliative care) can collaborate more effectively in a value-based model. For instance, when a primary care provider partners with a secondary care provider, they can together manage the patient’s entire journey. Primary care treatments, such as chemotherapy, radiation, or surgery, are complemented by secondary care services, like rehabilitation, nutritional support, or palliative care. By working together, they ensure that the patient receives a comprehensive package of services, resulting in better outcomes and lower costs.
Such collaboration can lead to innovative business models. Partnerships may form between hospitals, pharmaceutical companies, rehabilitation centers, and palliative care providers to offer comprehensive cancer care packages. These partnerships create a win-win situation for all stakeholders: businesses can manage their costs better and stand to gain from shared savings, while patients benefit from more coordinated, effective, and affordable care.
Exploring and implementing value-based healthcare models in cancer care can be a powerful strategy to manage the escalating costs of care, particularly in countries like India with substantial healthcare disparities. It requires robust collaboration between different healthcare providers and a patient-centric approach. With the right implementation, VBHC can enhance the quality of life for cancer patients, reduce the burden of cancer care costs, and present sustainable business models for healthcare organisations.
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