Value Proposition, Quality Assurance and Performance Monitoring s1

Day 2 - Forging New Pathways to Growth and Sustainability

Working Session 1 Value Proposition, Quality Assurance and Performance Monitoring

Value Proposition Definition: A value proposition is a business or marketing statement that a company uses to summarize why a consumer should buy a product or use a service. This statement convinces a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings. Companies use this statement to target customers who will benefit most from using the company's products, and this helps maintain an economic moat.

Investopedia, 2016. Available Online: http://www.investopedia.com/terms/v/valueproposition.asp#ixzz49NqT81QP

Sample Value Propositions: Select the Value Proposition that is most appealing to a potential customer:

Value Proposition #1 We deliver an evidence-based chronic disease self-management program in community settings. The program is evidence-based so it meets the needs of the population. We have excellent consumer satisfaction ratings from participants that attend our workshop. Each year we have at least fifty program completers.

Value Proposition #2 We offer a nationally accredited diabetes self-management and evidence-based chronic disease self-management program, targeting high-risk consumers with two or more chronic conditions. Each participant has an individualized assessment where we assess the consumer’s ability to self-manage their disease and identify potential gaps in care and HEDIS measures. During the disease self-management education, we work collaboratively to improve disease management to ensure that participants have improved medication adherence, increased compliance with recommended preventive health screening, and enhanced patient activation.

Steps to determining your value proposition:

1. Define the problem you intend to address 2. Define your service or intervention 3. Is your service or intervention innovative or is it a common service delivered in an innovative way 4. Assess if your intervention is addressing a key concern for the potential customer 5. Identify the risk that your potential customer has (financial and quality). 6. Determine the penetration of the customer in the market. 7. Determine the types of beneficiaries served by the customer and list all of the challenges faced by this target population. 8. Assess how your service addresses the customer’s risk. 9. Determine the level of access that you have to the target population. (Can you effectively reach their target population)? 10. Determine if there is a subset of the population served by the customer, that you could have the most impact in serving (e.g. If contracting with a Medicaid Managed Care plan that serves pregnant women and duals, you will want to segment your services to the Dual-eligible Medicaid beneficiaries). 11. Document how your program will complete the following: a. Reach the target population b. Provide services to the target population c. Document the effectiveness of your program for the individual and the population served d. Track the Return on Investment (ROI) obtained by buying your services e. Provide continuous quality improvement f. Deliver regular data to the customer to show the impact of your program at the individual an aggregate level Exercise:

1. Does your organization have a value proposition?

2. What are the elements of your value proposition?

3. What are the needs/points of pain that your program is addressing?

4. What is your unique niche that is highlighted in your value proposition?

5. What data can you share to support your value proposition?

6. Go through the steps of developing your value proposition.

7. Prepare a revised value proposition based on the input you have gathered.