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  • All HBS Web  (6,301)
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  • Article

Undermining Value-Based Purchasing — Lessons from the Pharmaceutical Industry

By: Leemore S. Dafny, Christopher Ody and Matt Schmitt
The analogy between value-based purchasing in pharmaceuticals and the new frontier of alternative payment models for health care providers is relatively straightforward. Insurers are increasingly demanding steep discounts from providers in exchange for inclusion in... View Details
Keywords: Drug Copayment Coupons; Prescription Drug Policy; Health Care and Treatment; Insurance; Cost; Policy; Pharmaceutical Industry
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Dafny, Leemore S., Christopher Ody, and Matt Schmitt. "Undermining Value-Based Purchasing — Lessons from the Pharmaceutical Industry." New England Journal of Medicine 375, no. 21 (November 24, 2016): 2013–2015.
  • 29 May 2006
  • What Do You Think?

How Important Is the “Service Sector Effect” on Productivity?

like the Vanguard Group, Southwest Airlines, and Wal-Mart (in the U.S.) have had a profound impact on the way we live and work. They share several things in common: (1) a penchant for driving down costs in their respective industries, (2)... View Details
Keywords: by James Heskett; Service

    Who Benefits Most in Disease Management Programs?

    Disease management programs aim to reduce cost by improving the quality of care for chronic diseases. Evidence of their effectiveness is mixed. Reducing health care spending sufficiently to cover program costs has proved particularly challenging. This study uses a... View Details
    • 03 Mar 2014
    • HBS Case

    Decommoditizing the Canned Tomato

    Consumers in the United States are so increasingly into fresh, local, and carbon neutral that if someone figured out how to grow a tomato that could walk itself to the grocery store, they'd be a millionaire. So why is Mutti S.p.a., a tomato processing company based in... View Details
    Keywords: by Maggie Starvish; Agriculture & Agribusiness; Food & Beverage; Retail
    • November 2, 2015
    • Article

    The Best Ways to Hire Salespeople

    By: Frank V. Cespedes and Daniel Weinfurter
    Companies typically spend more on hiring in sales than they do anywhere else in the firm. Average annual turnover in sales is 25% to 30%, while direct replacement costs for a telesales employee ranges from $75,000 to $90,000 and other sales positions cost as much as... View Details
    Keywords: Selection and Staffing; Salesforce Management; Retention
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    Cespedes, Frank V., and Daniel Weinfurter. "The Best Ways to Hire Salespeople." Harvard Business Review (website) (November 2, 2015).
    • 15 Mar 2016
    • News

    Health Care Delivery Innovations That Integrate Care? Yes!

    • April 2020 (Revised April 2023)
    • Case

    TransDigm in 2017: The Beginning of the End or the End of the Beginning?

    By: Benjamin C. Esty and Daniel Fisher
    TransDigm was a highly acquisitive company that manufactured a wide range of highly engineered aerospace parts for both military and commercial customers. Over the ten years ending in 2016, its stock price had increased ten times, and both EBITDA and revenues had grown... View Details
    Keywords: Value Capturing; Pricing Strategy; Supplier Power; Buyer Power; Porter's Five Forces; Bargaining Power; Aerospace; Acquisition Strategy; Value Drivers; Ethical Behavior; Regulation; Growth Strategy; Business Ethics; Defense; Procurement; Sustainability; Value-Based Business Strategy; Acquisition; Ethics; Private Equity; Financial Strategy; Growth Management; Performance Evaluation; Business Strategy; Competitive Strategy; Horizontal Integration; Value Creation; Competitive Advantage; Monopoly; Aerospace Industry; Air Transportation Industry; United States
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    Esty, Benjamin C., and Daniel Fisher. "TransDigm in 2017: The Beginning of the End or the End of the Beginning?" Harvard Business School Case 720-422, April 2020. (Revised April 2023.)
    • November 1984 (Revised March 1999)
    • Case

    Mayers Tap, Inc. (A)

    Mayers Tap, Inc. has a poorly designed cost accounting system and is in the process of redesigning it. This case provides background details for the rest of the Mayers Tap, Inc. series. View Details
    Keywords: Management Systems
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    Cooper, Robin. "Mayers Tap, Inc. (A)." Harvard Business School Case 185-024, November 1984. (Revised March 1999.)
    • 28 May 2019
    • News

    How bad are Pioneer’s job cuts? At over 27% of workers, they’re deeper than after 9/11 and the financial crisis

    • 07 Dec 2017
    • News

    Innovation is key to solving America's health-care problems

    • May 2009
    • Article

    Lobbies and Technology Diffusion

    By: Diego Comin and Bart Hobijn
    This paper explores whether lobbies slow down technology diffusion. To answer this question, we exploit the differential effect of various institutional attributes that should affect the costs of erecting barriers when the new technology has a technologically close... View Details
    Keywords: Technology Adoption; Cost; Problems and Challenges; Knowledge Dissemination; Competition
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    Comin, Diego, and Bart Hobijn. "Lobbies and Technology Diffusion." Review of Economics and Statistics 91, no. 2 (May 2009): 229–244.

      Leemore S. Dafny

      Leemore Dafny is the Bruce V. Rauner Professor of Business Administration and the Mary Ellen Jay and Jeffrey Jay Fellow at the Harvard Business School, and Professor of Public Policy at the Harvard Kennedy School. Dafny is an applied microeconomist whose... View Details

      Keywords: health care
      • October 26, 2015
      • Article

      Measuring and Communicating Health Care Value with Charts

      By: Robert S. Kaplan, Robin P. Blackstone, Derek A. Haas and Nikhil G. Thaker
      The goal of a health care system should be to deliver the most value to patients: the outcomes achieved for treating a medical condition relative to the costs incurred over a complete care cycle. We have found that a radar (spider web) chart is an effective means to... View Details
      Keywords: Service Delivery; Value; Health Care and Treatment; Health Industry
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      Kaplan, Robert S., Robin P. Blackstone, Derek A. Haas, and Nikhil G. Thaker. "Measuring and Communicating Health Care Value with Charts." Harvard Business Review (website) (October 26, 2015). (A collaboration of the editors of Harvard Business Review and the New England Journal of Medicine.)
      • 18 Sep 2000
      • Research & Ideas

      Big Deals: Financing Large-Scale Investments

      venture capital for people with real guts," quips Esty. "Most of the projects are start-ups, yet they cost something on the order of $5 billion, not $5 million." And all too often, he adds, they turn out to be losing... View Details
      Keywords: by Julia Hanna
      • July 2007 (Revised July 2008)
      • Case

      The Beijing Dream

      By: Arthur I Segel, Voon Siang Lee, Jialei Tian and Ying Laura Wang
      The purchase of a single-family home is generally the major investment for most young couples in China. Shows in detail the process that a young couple goes through in late April 2007 to find, finance, and close on an apartment in Beijing within what they believe to be... View Details
      Keywords: Property; Investment; Cost; Emerging Markets; Financing and Loans; Acquisition; Activity Based Costing and Management; Internet and the Web; Management Practices and Processes; Real Estate Industry; Beijing; United States
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      Segel, Arthur I., Voon Siang Lee, Jialei Tian, and Ying Laura Wang. "The Beijing Dream." Harvard Business School Case 208-015, July 2007. (Revised July 2008.)
      • 10 Oct 2013
      • Working Paper Summaries

      Managing Churn to Maximize Profits

      Keywords: by Aurélie Lemmens & Sunil Gupta; Retail
      • October 2023
      • Article

      What Does the Inflation Reduction Act Mean for Patients and Physicians?

      By: Amitabh Chandra and Benedic Ippolito
      The debate around prescription drug measures in the recently passed U.S. Inflation Reduction Act (IRA), which limit some patients’ out-of-pocket costs, has not fully addressed their effect on physicians and patients via their effect on payers. Reducing patients’ costs... View Details
      Keywords: Government Legislation; Price; Health Care and Treatment
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      Chandra, Amitabh, and Benedic Ippolito. "What Does the Inflation Reduction Act Mean for Patients and Physicians?" NEJM Catalyst Innovations in Care Delivery 4, no. 10 (October 2023).
      • February 1998 (Revised February 1999)
      • Case

      FreeMarkets OnLine

      By: V. Kasturi Rangan
      Describes the marketing strategy of an entrepreneurial start-up engaged in electronic purchasing for large manufacturers. By creating an electronic bidding platform, the company has been able to cut down procurement costs by about 15%. The case question concerns how... View Details
      Keywords: Cost Management; Growth and Development Strategy; Marketing Strategy; Bids and Bidding; Market Entry and Exit; Digital Platforms; Production; Electronics Industry
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      Rangan, V. Kasturi. "FreeMarkets OnLine." Harvard Business School Case 598-109, February 1998. (Revised February 1999.)
      • 2 Dec 2019
      • Other Presentation

      Increasing Solar Power

      By: Joseph B. Lassiter III and Abby Hopper
      Is increasing solar power the answer? Abby Hopper, president and CEO of the Solar Energy Industries Association, and Professor Joe Lassiter discuss how to deliver reliable, clean, low cost power for people everywhere. View Details
      Keywords: Solar Power; Renewable Energy; Service Delivery
      Citation
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      "Increasing Solar Power." Climate Rising (podcast), Harvard Business School Business and Environment Initiative, December 2, 2019.
      • 01 Dec 2016
      • Video

      Action Research to Put Health Care Ideas into Practice

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