The U.S. health care system is in crisis. At stake are the quality of care for millions of Americans and the financial well-being of individuals and employers squeezed by skyrocketing costs--not to mention the stability of state and federal government budgets.

In Redefining Health Care, internationally renowned strategy expert Michael E. Porter and innovation expert Elizabeth Olmsted Teisberg reveal the underlying and largely overlooked causes of the problem and provide a powerful prescription for change. The authors argue that participants in the health care system have competed to shift costs, accumulate bargaining power, and restrict services rather than create value for patients. This zero-sum competition takes place at the wrong level--among health plans, networks, and hospitals--rather than where it matters most: in the diagnosis, treatment, and prevention of specific health conditions.

In spite of competition among these systems, the patient care cycle is poorly coordinated. The fractured system undermines both efficiency and quality of outcomes.

Redefining Health Care lays out a breakthrough framework for redefining health care competition based on patient value over the full cycle of care--from prevention and diagnosis through recovery or long-term disease management. With specific recommendations for hospitals, doctors, health plans, employers, and policy makers, this book shows how to move to value-based competition on results that will unleash stunning improvements in quality and efficiency.

1. Scoping the problem
2. Identifying the root causes
3. How reform went wrong
4. Principles of value-based competition
5. Strategic implications for health care providers
6. Strategic implications for health plans
7. Implications for suppliers, consumers, and employers
8. Health care policy and value-based competition : implications for government
App. A Making results public : the Cleveland Clinic
App. B The care delivery value chain