Value RX: Giving Patients a Voice

ValueRx [email protected]

2© Barry Libert, Not to be distributed

Its time to Play Jeopardy

Please phrase all of your answers in the form of a question!

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� CREATING VALUE IN BUSINESS

NIS HEALTH CARE DIFFERENT?

The categories for today are

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1st Category: Creating Value

C$100 -- The Patriots

i $200 – It can help with your spelling

l $300 -- Trees are worth $150 here

e$400 -- It was invented in 1494

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2nd Category: Is HC Different?

I $100 – They are called patients

c$200 – Peers are preferred source

$300 – Even not-for-profits measure it

f $400 – Every one uses it

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The numbers tell all…

0

500

1,000

1,500

2,000

2,500

3,000

1981 1983 1985 1987 1989 1991 1993 1995 1997 1999

Year

Market Value Book Value

Millions ($)

2001

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…for Health Care as well

0

500

1,000

1,500

2,000

2,500

3,000

3,500

19811983 1985 1987 1989 1991 1993 1995 1997 1999

Year

Market Value Book Value

Millions ($)

2001

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� Invest in relationships

oUnderstand the risks

i Get and stay connected

nMeasure what matters

The 4 Rules of Success

9© Barry Libert, Not to be distributed

Its Now Time for Double Jeopardy

All the dollar values are doubled

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A: AOL has 200 M of them

Q: What are customers?

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� Old: Buildings and money

New: Customers, Employees, Providers

, Next: All of the above

•Rule 1: Invest in relationships

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A: It was worth $80 billion

Q: What is (was) Enron?

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� Old: Avoid them

mNew: Quantify them

t Next: Manage them

•Rule 2: Understand risks

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A: “Can you hear me now?

Q: What is technology?

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� Old: In Doctor’s offices

’ New: Across the organization

eNext: With everyone, everywhere: 24 X 7

•Rule 3: Get and stay connected

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A: Every business uses it

Q: What is GAAP?

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Liabilities

Assets

Balance Sheet

Net Worth

Revenues

Expenses

Income Statement

Net Income

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� Old: Tangible assets

aNew: Intangible assets

eNext: Everything

•Rule 4: Measure what matters

23© Barry Libert, Not to be distributed

Final Jeopardy

Rules for Success

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� My Family

�Today’s take-a-ways

The final categories

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A: My wife was right

Q: What is everything?

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� Invest in relationships

oUnderstand risks

oGet and stay connected

nMeasure what matters

The 4 Rules of Success

28© Barry Libert, Not to be distributed

“If I fulfill this oath and do not violate it, may it be granted to me to enjoy life. If I transgress it…

may the opposite of all this be my lot."

-- Hippocrates, 377 BC

29© Barry Libert, Not to be distributed

Thank you!