FROM COST CENTER TO VALUE CENTER

The new reimbursement models have effectively shifted nursing from a cost center to a “value center,” defined
as a department that demonstrates tremendous value for the money invested. According to a report by
VisionEdge Marketing, “That value needs to be measured in terms of value to the business. To be perceived as a
value center, an organization needs metrics that connect the function to what matters to the business.”1 In other
words, for nursing to become perceived as a value center, the metrics must link nurse staffing to bottom-line
revenue—which it does, under value-based purchasing. What matters to hospitals today is working strategically
within the framework of payers’ value-based programs in order to collect financial incentives while dodging
financial penalties and providing quality patient care to improve their communities.