The Stairway to Performance - Focusing on Outcomes

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When a large health care system in California started measuring health outcomes, a surprising thing happened: patient health increased, while at the same time, health care costs declined. Why did this occur? A major factor was that doctors started looking at the performance measures and teaming up to treat the sickest people. As a result, the number of “frequent fliers” – people who regularly sought medical care – decreased dramatically.

Paying attention to outcomes pays off in big ways. Yet many organizations fail to take the time to systematically figure out how to measure performance. As a result, the organization doesn’t flourish as it should. Instead, it stagnates.

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