Value and value chains in healthcare: a quality management perspective

Quality and value are currently convergent concepts in healthcare. The importance of patients as customers has increased the focus on quality management and value delivery. The Queen Elizabeth Hospital in Rotorua is a specialist hospital for rheumatic disease and rehabilitation. It has a clear mission for the delivery of customer quality and in fulfilling this mission uses a holistic approach (a value chain approach) to customer care. The value chain study of QEH’s product/service delivery has enabled medical, medical support staff and management to review both value delivery quality and delivery methods. The study explored the QEH value chain organisation and process structures and has identified questions concerning healthcare delivery and alternative methods for achieving current results and the future direction of the organisation. Value chain analysis encourages an intra‐ and inter‐organisational review of resource application and identifies alternative methods and structures for meeting objectives.