healthcare’the rising costs of insurance premiums and co-pays, the lack of
innovation, the poor experience at doctor’s offices and hospitals, and price of
faster than the biggest players can adapt.
rise of specialists and decline of general practitioners, integration with
complementary and alternative medicine, and other factors’consumers feel as if
they must drive their own healthcare.
followed, as in ‘the doctor told me to take this __________________ and do
__________________.’ Instead, internet research leads to
second-guessing and attempts at self-diagnoses. Both scenarios lead
to information anxiety. Too little and too much unfiltered information causes
this quiet despair. The emerging paradigm finds consumers lost,
bewildered, looking for sources and solutions that help make health care make
sense for them’and willing to switch to what works for them.
for disruptive entrants into the market. With 2.8 trillion at play,
everyone will race to get their piece of the pie, from well-established
companies outside of healthcare, to service providers offering new models
of care, to start ups. Hopefully, healthcare companies will recognize
the need to transform their business model and their product and service mix, or
risk dying on the vine.
the Health Research Institute (HRI) called ‘Healthcare’s New
Entrants: Who will be the industry’s Amazon.com’ The threat to the
established players is made plain: ‘Revenue
will circulate differently, and to many new
players. Consumers, spending more of their own money, are exerting greater
influence and going beyond the traditional industry to find what they
want and need. In the New Health Economy, purchasers increasingly will reward
organizations providing the best value, whether it’s an academic medical
center, a tech company with a great app, or a healthcare shopping network.’
tide of change, nor have they figured out how to diversify their revenue steams.
A single innovation can put a huge dent in the market. For example, if half of
all U.S. patients opted to administer an
at-home strep test, it could hurt the traditional provider network as much
as $68 billion. This move would benefit consumers, the company that makes
the test, and the retailer, but is a seismic shift for doctor office
an impact: Walgreen’s, Google, Time Warner, Target, as well as an increasing
number of healthcare technology start ups.
consumers, as they are the driving force of the change.
managing partner of the Southern Growth Studio, an innovation and strategic
growth firm based in Memphis, TN. Visit www.southerngrowthstudio.com to