Intellectual Frontiers

Theory

Outcome margin model

This note gives a test for whether a redesigned care pathway lets its owner keep the value it creates. It rejects the theory when labor remains proportional, outcomes are not measurable, payment does not reward the change, or suppliers retain the decisive bargaining power. Test whether a redesigned care pathway can retain value created through lower cost, better outcomes, or changed risk.

Model

Separate technology, service, workflow, outcome, data, and distribution value. Record cost, revenue, downside risk, capital, and the party able to capture each part.

Test

Compare the redesigned pathway with current care and a credible alternative. Include review, exceptions, patient acquisition, physical operations, and reimbursement compression.

Failure case

Reject the theory when labor remains proportional, outcomes are not measurable, payment does not reward the change, or suppliers retain the decisive bargaining power.

Related

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