Healthcare .. take some lessons from these retail CEOs …Time to redefine value in healthcare

Top CEOS from Macy’s, Target and Walmart Redefine how they will conduct business for the benefits of all stakeholders.

More than 180 CEOs at some of the largest and most recognized corporations in the United States are changing the ways they do business. Retailer like Macy’s, Target and Walmart announced that they are updating its corporate governance principles, which has served as a guideline on “the purpose of a corporation” for more than four decades.

In their statement, executives said “they would conduct business for the benefit of all stakeholders — not only generating long-term profits for shareholders, but also dealing fairly with suppliers, investing in employees, supporting communities and delivering value for customers.”

This is a major development and highly needed to expand teh purpose of business for the greater good of all stakeholders.

This turning point is something for healthcare to learn from. In healthcare, we have been talking about shifting from volume to value healthcare by focusing on quality, service and cost. The focus has been so far on value being defined by payors and not patients and consumers. Consumers have not seen yet the impact of value especially reduction of cost of care.

We are encouraged in healthcare to follow the model of the retail leaders and redefine value from the consumer perspective and delivering true value to all the stakeholders including the consumers (less cost better quality), the providers (Less hassle factors) and the payors.