Swedish Solutions

The ideas behind quality healthcare at lower cost

a couple of flags hanging from the side of a building

Photo by CARTIST on Unsplash

Photo by CARTIST on Unsplash

Welcome to Deep Cuts, a publication series created to allow interested readers to dig deeper on key topics surfaced in the Healthcare Reframed podcast.

Our guest in this episode of the podcast is Göran Henriks, the former Chief Executive for Learning and Innovation in Sweden's Jönköping regional health system. Long before taking on that lofty title, he started his career as a child psychologist and basketball coach. The early insights he gained into human interactions and teamwork from those experiences ultimately led him to a career in hospital safety and leadership roles in one of the highest-performing healthcare systems in Sweden and the world.

In the podcast, Göran reflects on the many influences inside and outside of healthcare that helped inform his thinking, some of which may be familiar to viewers and some of which likely will not. Here, you will find some background information on Sweden itself, on the Swedish healthcare system and its outcomes, and on a few key ideas that have been important influences in Göran's story. All quotes below are from Göran Henriks unless otherwise attributed. Scroll down or use the navigation bar at the top to hop to specific topics, and you can use the link below to go directly to the full podcast.

Sweden and the Vasaloppet

Swedes were very much farmers living in the forests, and I think that we have kept that kind of approach to life. So Swedish people love to go outside and go into the forest, go to the lakes fishing, being in the green context. And really, I think it's connected to that, also an approach of being healthy.
rover near road and buildings

To really understand the impact of Göran's career, it is important to understand the context in which he was working. Sweden is a country of 10.6 million people in northern Europe, making it the 5th largest country in Europe. Similar in some ways to the UK, Sweden is a constitutional monarchy, but the government operates as a parliamentary democracy. The capital city, Stockholm, is almost 800 years old and has a population of 2.4 million in the city and surrounding area. Sweden's economy, once largely dependent on timber and mining, is now well-diversified and has growing tech and pharmaceutical sectors. Sweden's population is not as homogeneous as sometimes thought, with 79% of Swedish ethnicity, but almost 1 in 3 inhabitants with at least one foreign born parent.

Göran's home city is Jönköping, a city of just over 110,000 inhabitants in southern Sweden, on the shores of Sweden's second largest lake, Vättern. Jönköping was once known for making matchsticks, but today is better known for its 2 universities and an innovative and cooperative small business culture. Much of Göran's career was spent leading Qulturum, a "center for the development of improvement knowledge and innovation in healthcare", which is also responsible for the delivery of healthcare services in the region.

Sweden's healthcare system is by law a nationally regulated but locally administered system. The national government sets high level policies, but regional and municipal governments are responsible for the design and operation of their local systems. Funding comes primarily from regional and municipal taxes, supplemented by grants from the central government. Regions and municipalities are required by law to create and operate within a balanced annual budget for all public services, including healthcare.

Enrollment in the public healthcare system is universal and automatic, and – with some minor variations between regions – covers inpatient care, outpatient care, dental care, mental health, long term care, and prescription drugs. Of note, the public system is operated around 3 core principles: human dignity and equality, those in greatest need take precedence, and cost-effectiveness. A small private healthcare sector began to grow in the early 2000s after some of the government reforms discussed below but today accounts for only about 13% of system spending. Overall, Sweden's spending on healthcare is approximately 11% of GDP, just over half of the proportion of GDP that the US spends and roughly 1/3 of US spending on a per capita basis.

What outcomes does Sweden achieve at that fraction of the cost of the US system? Life expectancy is 83.3 years and rising, as compared to 76.4 years and declining in the US. The number of years of life lost to preventable deaths per 100,000 population in Sweden is less than half of the US figure. Infant mortality rates in Sweden are also less than half those in the US. And medical bankruptcies rarely if ever occur in Sweden, whereas in the US they represent an estimated 60% of all bankruptcies. Impressively, the Jönköping regional system led by Göran Henriks has been leading Sweden in both financial and health outcome metrics for a number of years.

source: OECD, KFF

source: OECD, KFF

As a hybrid private-public system with some superficial similarities to the US, those outcome and cost differences are striking. The podcast contains much discussion of the differences between the two systems, but here we will move on to some of the important concepts raised in the interview that may be helping Jönköping achieve the best results in Sweden.

But first, a short non-healthcare diversion. The podcast episode begins with Göran's description of a famous Swedish ski race, the Vasaloppet, which is actually the world’s biggest cross-country ski race and had almost 60,000 participants last year. Held each year on the first weekend of March, the race conveniently has its own website where you learn about the ski race and all of the associated other events. The short version of the story is that the race commemorates a guy named Gustav Eriksson, who – just as Göran says – escaped the Danes, united Sweden and became King Gustav Vasa.  The race itself started in 1922, has been run annually ever since, and is deeply connected to blueberry soup. Really.

Also, early in the podcast the Swedish word for the black material that ice water swimmers once used for insulation is mentioned. The word is "tjära", which is pronounced "shair-rah" and means "tar" (not "whale fat"). Don’t let anyone tell you that Swedes are not made of tough stuff.

New Public Management and Value-based healthcare

"Value-based healthcare here started with a reaction of New Public Management and Michael Porter and Elizabeth Teisberg that tried to find a new construction of New Public Management, but I think they got lost a little in the solution."

Summary of NPM approaches

Summary of NPM approaches

Michael Porter

Michael Porter

Elizabeth Teisberg

Elizabeth Teisberg

The quote above opens up two very important discussions in the world of healthcare. Many in US healthcare will be familiar with the names Michael Porter and Elizabeth Teisberg, but the term New Public Management (NPM) is less well known.

In general, NPM refers to a set of government reforms based on the belief that implementing management strategies from the private business sector would improve the performance of public service organizations. The graphic highlights some of the common features of the NPM approach, at least in theory.

First deployed in the real world at a national level in the 1980s during the Thatcher era in the UK, NPM reforms led to decentralization, privatization, and deregulation of previously centralized government services, as well as efforts to shift incentives for government employees with performance-based pay. NPM reformers advocated for a shift away from traditional inward-looking, process-focused management and towards outward-looking, customer-focused strategies. Viewers of earlier episodes may note the overlap with some of the ideas of Malcolm Baldrige, who Göran also mentions as an influence, as well as the themes of Reagan era US conservatives in general.

NPM changes were widespread in Sweden in response to a financial crisis in the 1990s and by the early 2000s included the introduction of market competition in healthcare and education.  While they are still quite prevalent, a backlash began against NPM reforms in the 2010s, triggered in part by reporting about a patient alleged to have died as the result of having an "unprofitable" illness. At the time, the NPM reforms had led to the application of business-style productivity metrics for physicians, such as patients seen per day, a landscape familiar to many US physicians today. Other reports criticized NPM reforms for fragmentation of government services, leading to greater inequality in service quality and to greater wealth inequality in general as public services were converted into private business goods.

Similar to NPM, the idea of value-based healthcare seeks to draw concepts from the business world and apply them to improving the healthcare system. Michael Porter and Elizabeth Teisberg usually get credit for inventing the notion of value-based healthcare in the early 2000s while they were both on the faculty at Harvard Business School. Porter is still best known for his work in the 1980s and 90s on his “five forces” framework for defining competitive advantages between businesses and between nations, and he is considered by many to have defined the modern field of business strategy.  Teisberg began her career with a PhD in engineering before moving into the world of healthcare delivery.

Together, Porter and Teisberg argued that US healthcare was suffering from an unhealthy type of competition, focused almost exclusively on reducing costs. Instead, they suggested that healthcare should focus on increasing value to patients by competing on both health outcomes and costs.  It is worth noting that Porter and Teisberg felt that the ideal measure of health system performance was how well the system delivered outcomes that mattered to patients for a given cost, as opposed to outcomes that mattered primarily to doctors and healthcare administrators. In this way, they also deserve some credit for inspiring the movement for patient-centered care.

In the intervening years, the ideas behind value-based healthcare — much like NPM — have been tremendously influential and have spread widely around the globe. Further refinements of the work with co-authors Thomas Lee and Robert Kaplan suggested clinical program organization and financial accounting approaches to facilitate a transition to value-based care. In more recent usage, however, the term “value-based healthcare” has become very widely used and now covers such an expansive array of approaches that some authors have noted that “value to whom” is not always well defined, and cost and outcomes are addressed in highly variable proportions.

Festina Lente

"In healthcare, where so many things happen at the same time, you have to make rules so you can be quick but it looks slow because you have it under control."

Basketball coach Dick Motta. Photo by Joe Mahoney (AP)

Basketball coach Dick Motta. Photo by Joe Mahoney (AP)

grayscale basketball players

One of the many influences on Göran's work from the world of basketball is the phrase Festina Lente, which he says originally came to his attention courtesy of former Dallas Mavericks basketball coach Dick Motta. The phrase, which translates from Latin as "make haste slowly", dates back to at least the Roman Empire and was even adopted as the motto of the Roman emperor Augustus, who used this idea primarily in battle strategy but liked it so much that he had it printed on Roman coins. In the Renaissance era, the Medicis of Tuscany also took it as their motto and it appeared in the works of Shakespeare as well. Another version of this saying from the basketball world comes from legendary UCLA coach John Wooden, who was fond of saying "be quick but don't hurry."

The meaning of Festina Lente is that producing quality work requires a balance between speed and precision. While time matters, rushing to complete a task increases the risk of mistakes, waste and poor results. Techniques for balancing these conflicting imperatives include planning and practicing plays or strategies, leaving time for creativity and thoughtful problem-solving, but also paying attention to forward flow in a project and avoiding "analysis paralysis".

Applications of this idea in medicine are numerous. The thought that, like basketball, modern medicine is much more a team sport than an individual one has been discussed many times, including in this talk and other written pieces by Atul Gawande. The idea that medical teams need to practice to be able to operate efficiently under pressure is one of the key drivers of the recent growth of simulation training in medicine into a multi-billion dollar industry. And there is an excellent bit of Festina Lente-related leadership wisdom in Göran's comment that coaches can help players during practice, but during the game it is the players who must read the game and react — an assertion that also has echoes of the need more for thoughtful guidance than strict direction in steering complex adaptive systems (see our Episode 3 Rabbithole story for more on this).

The professor of creativity

"Everyone has the right to doubt everything as often as he pleases and the duty to do it at least once. No way of looking at things is too sacred to be reconsidered. No way of doing things is beyond improvement." — Edward de Bono

Edward de Bono (1933-2021). Photo by Roy Zhao

Edward de Bono (1933-2021). Photo by Roy Zhao

Edward de Bono (1933-2021). Photo by Roy Zhao

Edward de Bono is a name that was new to all of us on the Healthcare Reframed team, but he was mentioned in the podcast as an early influence on Göran's thinking about system change, in particular his restructuring of hospital admission patterns with Dr. Mats Bojestig.

Born in 1933 on the island of Malta, de Bono was a physician trained at Cambridge who went on to some international renown for his ideas on thinking and creativity. As described on his still active website, "he became interested in the nature and teaching of thinking while doing medical research on the self-organizing nature of physiological systems."

His best known idea was lateral thinking, an approach to problem solving using insight, creativity, and humor. He contrasted this approach with more traditional, logical, vertical thinking. In de Bono's words, "you cannot dig a hole in a different place by digging the same hole deeper. Vertical thinking is used to dig the same hole deeper. Lateral thinking is used to dig a hole in a different place."

De Bono proposed a series of tools for improving lateral thinking, one of which is po, or provocation, the disruption of conventional thinking with unusual or even silly ideas. An excellent example of this technique comes up in the podcast, when Göran's response to a problem with emergency room overcrowding is "let's just close the emergency room." That was obviously not a serious solution to the problem, but it triggered a discussion that led to the patient journey-mapping process in the Esther story and ultimately to improvements in patient flow that reduced the burden on the emergency room.

While significant differences certainly exist between the US and Sweden both economically and culturally, we also have much in common. We hope that the impressive overall results of Sweden's healthcare system, and Göran Henriks' role in leading his regional system to its excellent results, will convince our readers to look to Sweden for ideas and inspiration for change in the US system — perhaps a little "po" of our own.

References and additional reading

  1. NPM reconsidered: towards the study of enduring forms of NPM. Sorin Dan, Per Lagreid, David Spacek. Public Management Review, 2024. 26:9, p2531-2541.
  2. Has New Public Management improved public services? 14 July 2020, ANZSOG. Website accessed 8/14/25.
  3. The effects of new public management on the quality of public services. Victor Lapuente and Stephen Van de Walle. Governance, May 2020.
  4. " 'Value' of care was a big goal. How did it work out?" by Austin Fraik, New York Times, Sept 23, 2019
  5. Patient Hospital Experience Improved Modestly, But No Evidence Medicare Incentives Promoted Meaningful Gains. Irene Papanicolas, Jose Figueroa, E. John Orav, Ashsish Jha. Health Affairs, January 2017.
  6. “The Esther Approach to Healthcare in Sweden: A Business Case for Radical Improvement,” N. Vackerberg, Governance International, 2014.
  7. “The Development of Quality as Business Strategy in the County Council of Jönköping, Sweden"
  8. “Making Systemwide Improvements in Health Care: Lessons from Jönköping County, Sweden, T. Bodenheimer, M. Bojestig, and G. Henriks, Quality Management in Health Care, Jan–March 2007 16(1):10–15.