Now that value-based purchasing, employee benefit design, etc. is becoming popular, it is probably a good time to consider the other kinds of value that should be recognized and incorporated in such strategies.  For value-based approaches to work for employers, insurers and governments, they must also work for employee, health plan members, and beneficiaries as well.

At the simplest level, such strategies must appeal to and satisfy individuals and populations who are expected to select and be satisfied by the benefit offerings, insurance plans and lifestyle/health/disease management (LHDM) strategies that are included in value-based offerings developed by payors.  And at the more complex level, “consumers” must enroll in, change their purchasing and lifestyle behaviors, and persist in healthier vs. unhealthier behavior patterns in order for payors to realize optimal gains from their strategies.

For consumers to cooperate as enthusiastically and effectively as possible, they must anticipate and achieve value of a personal kind and of idiosyncratic significance to individual participants.  And the value they are after will rarely be the same as that sought by payors when they invest in value-based strategies and programs.  In fact, the value payors seek may conflict or compete with the value that consumers seek, though not by any means in all cases.

There are two kinds of value likely to be of importance to consumers.  First come the life asset benefits vs. costs of cooperating in payor-designed or purchased efforts, including benefits related to health, personal power, talent, time, and wealth.  While health and wealth are often explicitly incorporated as benefits for consumers in payor-sponsored benefit programs, wealth costs are the “stick” that drive cost-shifting to consumers, and the suppose “empowerment” of high-deductible health plans.

Personal power may be a cost to consumers if they have little or choice.  The same is true if they have little say in the kind of LHDM interventions offered.  Consumers’ talent, i.e. knowledge, skills, and attitudes that make them valuable to employers and their families, as well as themselves may or may not be incorporated in such programs.  And consumers’ time is almost invariably a cost for them, though time management and convenience can be included in value-based programs.

The second set of values represent the basic human values that often un- or semi-consciously guide consumer behaviors.  Basic values such as the set that Abraham Maslow identified decades ago, namely survival needs, safety security, belonging, self-esteem and self-actualization can provide the basis for both general and segment-specific LHDM programs, and for individualizing the personal experience consumers have in such programs.

For people at risk for survival, i.e. those living paycheck to paycheck or Medicaid eligibles, for example, basic health and wealth benefits may be primary.  For those who are insecure about affording future sickness costs, the health protection and risk reduction of LDHM programs may be of paramount importance.  Among those who strongly value belonging, group visits and peer support group elements in LDHM programs can deliver both the socialization and connections they crave, while saving money for payors.

To the extent that “belonging” includes a desire for the esteem or respect of others, this can be a separate foundation for participation in value-based programs – e.g. losing weight to become more attractive, or improving performance at work thanks to higher energy levels or smoking cessation.    And self-esteem is sure to be a potential benefit to almost everyone who gains confidence in their ability to manage their time, wealth, talent or health, along with the power to manage their own behavior, as well as improve their work and home life “performance”.

Self-actualization is a logical theme for virtually all LHDM programs, since “being all you can be” requires good if not optimal health.  The same applies to any efforts incorporated in LDHM initiatives that enhance participants’ ability to manage their time, talent, wealth and power assets better, which is often an important way to reduce the time costs to participants, and add to the benefits that participants deliver to sponsors.  Applying Maslow’s basic human values has proven its effectiveness in marketing revenue-generating services, for example, and should work equally well for marketing cost-saving programs. [D. Wolfe “How Maslow Saved a Hotel Chain”, Sep 4, 2007]

Marketing is a logical paradigm to incorporate in value-based strategies whenever a behavioral response by consumers is desired.  And Maslow’s set of values, along with basic life assets, are logical elements in any marketing efforts.  While education and information are often the sole or main focus of value-based strategies, they are nowhere near as effective as values-based marketing has proven to be.