CareMore, Forward and Health City represent three possible approaches to healthcare disruption, but it’s far too early to declare a hero among them. Dr. Christopher Rumpf serves as the Chief Clinical Officer for SE Healthcare. There are 4 Levels in the Game. Disruptive solutions tackle these simple, sometimes mundane, activities and fundamentally change the care experience for all parties. And because human employees are more expensive and less-reliable than computers, you won’t find many of them performing traditional office roles at Forward’s San Francisco location, nor at the one set to open in Los Angeles. To accomplish this, Health City matches supply to demand to an exacting degree, quite unlike American facilities with their inadequate volume, inconsistent staffing and wasted capacity. The Four Characteristics of Disruptive Healthcare IT Solutions. Copyright © 2020 Harvard Business School Publishing. Lenovo is helping to power the disruptions that are happening in healthcare, as well as many other industries. Or maybe an operationally efficient, off-shore solution will disrupt America’s bloated delivery system, just as it did the manufacturing and IT sectors. Clayton M. Christensen is a professor at Harvard Business School. Harvard Business Publishing is an affiliate of Harvard Business School. When a disruptive technological enabler emerges, the leaders in the industry disparage and discourage it because, with its orientation toward simplicity and accessibility, the disruption just isn’t capable of solving the complicated problems that define the world in which the leading experts work. From receptionists, billing clerks and housekeepers to nurses, technicians and physicians, people account for more than 40% of all healthcare expenditures. (Altern Ther Health Med. The brief makes a case for India’s health technology start-ups to fill the gaps in SSA’s healthcare delivery with their innovative solutions. Healthcare: the big picture. Today’s health-care industry screams for disruption. With a background in artificial intelligence (AI), Aoun previously created Sidewalk Labs, an urban innovation project for Google and, before that, a news-aggregation startup that Google purchased for more than $30 million. 5 (2007):1329–1335; 10.1377/hlthaff.27.5.1329 Mercè Bonjorn Dalmau xlv-xlvi by Clayton Christensen, Jerome Grossman M.D., and Jason Hwang M.D. Then again, technology aversion is the very thing that undid industry titans like Kodak, Borders and Yellow Cab. Take a one-hour plane ride from Miami to the Grand Cayman Islands and feast your eyes on the palm-tree-lined entryway of healthcare’s third potential disruption. Highly efficient operating rooms. Today’s healthcare is extremely people dependent. As a result, CareMore achieves 20% fewer hospital admissions, 23% fewer hospital days per patient and a 4% shorter inpatient stay compared to traditional Medicare beneficiaries. So, rather than hiring more people, Aoun uses sophisticated technology to reduce healthcare’s massive headcount and costs. Today’s healthcare industry faces many hurdles that are driving up costs. CareMore’s multi-disciplinary teams offer individualized programs for patients living with complex (and expensive) medical problems such as chronic lung disease, diabetes, heart failure and kidney dysfunction. Disruptive innovation that is able to provide a cheap solution for a health problem for millions of people should be accepted no matter where it comes from. 4 Disruptive Innovations in Healthcare Mark A. Hyman, MD, is the editor-in-chief of Alternative Therapies in Health and Medicine. The transformational force that has brought affordability and accessibility to other industries is disruptive innovation. Precise definition of the problem, in this and in every industry, is a prerequisite to the development of a predictably effective solution. 3D Printing. In Part II, we zero in on how disruptive solutions have begun to improve health while lowering costs for significant populations. In The Innovator’s Prescription, Clay Christensen applies the principles of disruptive innovation to the broken health care system with two pioneers in the field—Dr. Solutions to the Crisis . At the outset, knitting all these pieces together will require a much higher degree of integration than has been the norm in the health-care industry. He co-founded Innosight and Rose Park Advisors. One of the key tenets of disruptive innovation is that it often starts small. Founded in 1993 as a medical group, CareMore was acquired by Anthem in 2011 and rapidly expanded its services across eight states. Our “DeepCentric” platform is a smart, trusted and secure platform enabling Digital Clinical Trials execution with patient at its center. And because extensivists are trusted by their patients, they’re able to manage specialty referral, hospitalization and admissions to skilled nursing facilities in the most efficient ways. But by using nurse practitioners and extensivists to personally manage referrals within CareMore’s cost-effective specialty network, the company goes a step beyond. A powerful mission. Being disruptive is to be visionary – to not be afraid to break conventions, to do something no one has done before, and to achieve something no one has achieved before. In these roles, I was responsible for 10,000 physicians, 38,000 staff and the medical care of 5 million Americans on both the west and east coasts. CareMore focuses on caring for the relatively sick, particularly low-income seniors enrolled in Medicare Advantage. Health City completes more than twice as many surgeries per day as the average U.S. hospital. Disruptive innovation has brought affordability and convenience to customers in a variety of industries. Editor’s note: This post is part of a three-week series examining innovation in health care, published in partnership with the Advanced Leadership Initiative at Harvard University. From there, you step up to a sophisticated, space-aged body scanner and place your left hand inside the reader. Inside Health City, the average delay is eight minutes, with an aim of reducing it to six. And since Forward’s members pay a $149 monthly fee with no copays or deductibles, data entry is designed to support care delivery, not billing and coding. But disruption solves the more fundamental question: How do we make health care affordable? American healthcare is inefficient, ineffective and expensive. Fires, floods, earthquakes, cyclones, workplace accidents and wars occur nearly every day somewhere in the world, with most warranting large-scale medical interventions that demand timely response and skillful inventory management. This disruption is not just limited to small start-up companies. Should that number grow, it will likely come at the expense of the doctors and hospitals who benefit from today’s broken system. Employers will need to play a more proactive role in orchestrating the emergence of this new value network, compared to the reactive posture they have taken in the past. In U.S. hospitals, delays in addressing patient problems often run an hour or longer on nights and weekends. Combined, these companies care for a fraction of 1% of American patients. Fig 1 Data from Definitive Healthcare. Automation has been disrupting healthcare for a while, but it’s particularly... Home monitoring applications. Health City is a sophisticated, modern hospital, offering affordable cardiology, pediatric, orthopedic and oncology services with clinical results that rival the best in the United States. The magazine issue recognizes top 10 women leaders who have been leading businesses by combining the best in advanced technology and state-of-the-art security solutions to disrupt businesses globally. This can be viewed through two different lenses: 1) the dynamics of the local healthcare environment and homegrown innovators and 2) through disruptive innovation (a model first formulated by Innosight co-founder Clay Christensen). I’m passionate about transforming the American healthcare system and helping people understand the consequences of their medical decisions. Follow me on Twitter @RobertPearlMD. You may opt-out by. We tracked down the most prominent examples of reverse innovation in digital health from Zipline drones in Rwandan to portable ECG machines in rural India. Over half of health care workers reported exposure to one of six specified disruptive behaviors, ranging from hanging up the phone before a conversation was over to physical aggression towards … Founded in 2014, Lucro, whose healthcare solutions marketplace is backed by Martin Ventures, allows healthcare leaders to communicate and collaborate with peers for innovative solutions. Opinions expressed by Forbes Contributors are their own. To do that, Jain hires large numbers of nurse practitioners, social workers, physician assistants and pharmacists. In a recent Forbes editorial, Jain explained his hire-more philosophy: “Given the false choice between ensuring that I have the right processes and technology in place or the right people … I would choose the latter every day of the week.”. The company spends twice as much on staffing as the typical healthcare organization – part of an approach that has proven remarkably successful. Disruptive Innovation in Health Care Delivery: A Framework For Business-Model Innovation. Regulations and reimbursement systems currently trap in high-cost venues much care that could be provided in lower-cost, more convenient business models. Disruption in health care entails moving the simplest procedures now performed in expensive hospitals to outpatient clinics, retail clinics, and patients’ homes. Today, 20% of elderly patients consume 80% of Medicare resources. 2007;13(4):10-14.) These three elements are: 1. Then there’s the AI system itself. Health care may be the most entrenched, change-averse industry in the United States. The first is that while the technological enablers almost always emerge form the laboratories of leading institutions in the industry, the business model innovations do not. Apple sold its Apple IIe personal computer as a toy to children, not to the accounting departments of major banks. Read this blog to learn how the new normal is creating ‘Disruptive Innovations’ in Digital Healthcare. Our recent study in The Joint Commission Journal on Quality and Patient Safety demonstrated the prevalence and impact of health care worker disruptive behaviors in a large U.S. health system. Those solutions lead to our key recommendations: For providers: The business model of extended care teams that include health coaches is driving the ability to deliver holistic primary care tailored for each individual—lowering costs and hospitalization rates. Healthcare is one service that nearly all of us will purchase at one point or another. CareMore: In The Direction Of High-Touch Patient Care. Für die Leser von medisruptive werden Möglichkeiten und Erfahrungen aufgezeigt die sich aus der Verknüpfung von Menschen anstelle von Dingen (IT oder Kommunikationssystemen) ergeben. Adjacent to the hospital, you’ll see the future site of a five-star hotel. That is, the more surgeons focus on a limited number of procedures, the better their performance and results. Disruptive innovation happens when an industry seeks to provide accessible solutions to systemic problems at a low cost to consumers and providers. Instead of an eight-hour block, they run for 12. The technological enabler transforms a technological problem from something that requires deep training, intuition, and iteration to resolve, into a problem that can be addressed in a predictable, rules-based way. Almost every industry began with services […]. The distinct power of CareMore derives from its synergistic approach, an end-to-end care model that not only maximizes quality outcomes and avoids complications from chronic disease, but also effectively controls specialty referrals and inpatient utilization. Through high-tech devices and AI programming, Forward’s model could expand into high-end specialties. Stepping away from the issues facing health care as a whole, we want to remind you about the Health Professions Network Association Summit in Chicago, July 26-27.. It may be through highly personal care that effectively manages utilization and helps sick patients get healthier. That’s why CareMore hires “extensivists” to oversee complex patient cases both inside the hospital and on an outpatient basis. Other disruptions fail because they lack new value networks that combine business models into coherent ecosystems that allow them to disrupt their predecessors. When a physician enters the room, there’s no large computer to sit behind and, therefore, no barrier between you, the doctor and the problem at hand. And because chronic diseases are often associated with high levels of stress and depression, CareMore provides extensive mental and behavioral health services. Unlike commonly used algorithmic care that requires manual revisions, Forward’s technology learns as it goes. In Part II, we zero in on how disruptive solutions have begun to improve health while lowering costs for significant populations. We strongly believe that only digital health can bring healthcare into the 21st century and make patients the point-of-care. The biggest question for CareMore is whether it will hit a ceiling. Diagnostic abilities are the technological enablers of disruption in health care. Highlighted here are three possible directions the industry could turn and three trailblazing companies hoping to guide the way. The objective data affirms the hospital’s clinical excellence and lower costs, but Americans distrust the medical care provided in other parts of the world. Disruptive innovation has brought affordability and convenience to customers in a variety of industries. The challenge that we face — making health care affordable and conveniently accessible to most people — is not unique to health care. The challenge that we face — making health care affordable and conveniently accessible to most people — is not unique to health care. Diagnostic abilities are the technological enablers of disruption in health care. Such solutions can be defined as disruptive because of their uniqueness in the healthcare setting. Inside the exam room, a technician uses “near infrared” technology to draw your blood before running tests at Forward’s fully automated in-house laboratory system. Technology enablers 2. Business model innovation 3. This three-part series, which previously explored the limited impact of primary care innovators and the struggles of U.S. hospitals, now concludes with the search for a hero – a disruptive cure for what ails the U.S. healthcare system. Book Description ... over the past decade on the causes and proposed solutions for our healthcare mess. EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, Michigan Economic Development Corporation With Forbes Insights. HealX develops new drugs and treatments for rare diseases using artificial intelligence to examine the current universe of existing drugs in order to repurpose them for curing rare diseases. Nucor cut its teeth on concrete reinforcing bars, not the sheet steel that fed Ford. The company's uniqueness is in its technology, which is designed to scale up. In other words, it’s ripe for disruption, which could happen a number of ways. More then 20 Cars Available through in-App Purchase. But to understand why the company may prove disruptive, let’s dive deeper into its model, one that prioritizes disease management, limited specialty referral and reduced hospitalization: This last point may be the most important. Disruptive innovation is a concept that has been developed for analysing ways to improve health outcomes and reduce costs in the US health care system. The views I express here are my own and do not necessarily represent those of Kaiser Permanente. HealthTrust is helping organizations seek out inventive solutions designed to manage costs and improve patient outcomes. This is how CareMore is able to invest in a larger staff. Just prior to the pandemic, we asked our members what they think will be the biggest disruptor in healthcare for the year ahead and why. Our recent study in The Joint Commission Journal on Quality and Patient Safety demonstrated the prevalence and impact of health care worker disruptive behaviors in a large U.S. health system. American healthcare needs a hero. 3 examples of disruptive innovation in healthcare Automation for COVID-19 antibody testing. However, business model innovation has stalled in the last three decades. Amid the Covid-19 pandemic, there’s been a heavier reliance on technology, including the internet of things to facilitate communications amid social distancing and lockdown measures. By comparison, Europe spends $1.8 trillion annually on healthcare for a population nearly twice the size. The current definition does not … Shetty’s approach, like the other two, is complex. As it tries to expand to new markets, CareMore may also encounter resistance from patients and the broader medical community given the narrowness of its specialty network. It is both a hare and a tortoise. While the term “disruptive” may have negative connotations, Jones says the results of the innovations positively impact the overall operation of a facility. This government-run program differs from traditional Medicare in that doctors receive a lump-sum prepayment for the expected cost of care, rather than receiving “fee-for-service” payments for each visit, test or procedure. 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