Fundraising for Hospitals: Value-Based Healthcare Philanthropy

At the core of national efforts to improve the quality of healthcare is a shift to value-based care, a drastic transition from the long-standing focus on volume-based healthcare. This market shift toward values-based health care, inspired by Harvard economist Michael Porter, is considered revolutionary. The now outdated fee-for-service model had incentives to "do" more. Order more tests. See more patients. Do more procedures. Make more money. Modern, value-based healthcare is about doing better, not just more. It’s about getting good-quality patient outcomes while using fewer healthcare resources; focusing on the continuum of care for patients rather than episodes of care; encompassing qualities of compassion, empathy, and responsiveness to the needs, values, and expressed preferences of the individual patient; employing evidence-based medicine and proven treatments and techniques; viewing the patient as a unique person, rather than focusing strictly on the illness; recognizing that family and friends are essential supports for the patient's healing process; and being transparent, upfront, and honest with information so patients can make informed decisions with us. Healthcare philanthropy is also in a state of transition. Like healthcare professionals, hospital fundraisers are also being asked to challenge assumptions and look for ways to do better instead of just doing more. by William J. Mountcastle, draws parallels between the fundamental changes in patient care and in healthcare fundraising. Just like "value-based care" focuses on value, not volume, Mountcastle sees "value-based healthcare philanthropy" as focusing on people, not money. Mountcastle points out that the medical community is coming up with strong incentives to encourage doctors to spend more time with their patients, more time educating their patients, and more time listening to their patients and soliciting input when considering various testing and treatment options. He urges hospital fundraising teams to come up with strong incentives to spend more time listening and building relationships with philanthropic investors, learning about philanthropic investor needs and preferences, and building strong personal connections based on trust, responsiveness, and mutual benefit. Mountcastle has developed a methodology to help hospital fundraising teams succeed with value-based healthcare philanthropy based on these five key drivers of value-based philanthropy: Demonstrating Your Hospital’s Value to Clearly Show Impact Maximizing the Value of Your Fundamental Fundraising Programs Measuring the Value of Your Fundraising to Ensure High Performance & Effectiveness Investing in Value to Build an Amazing Organization Sustaining Value to Make a Profound Difference in the Health of Your Community Concluding Thoughts