A SURPRISING LEADER IN BUSINESS MODEL INNOVATION: HOSPITALS, HEALTH SYSTEMS AND HEALTH MINISTRIES
It is often said that healthcare has been slow to move into the digital era and that provider organizations struggle to fully meet the needs of patients and their families. While these comments have merit, my intention is not to lament, but to use healthcare providers as a leading example of an industry vertical that has fundamentally changed its value proposition and business model at least three times within the past 100 years, and more importantly, is currently in the midst of another big change.
The beginning of the last century began with childbirth, influenza, and everyday trauma inflicting incredibly high casualties. In fact, a hospital’s purpose, in many instances, was to be a place where those with little-to-no hope went to die. Hospitals were not intended to be places where disease was cured- instead they were valued institutions because of their ability to offer compassion and comfort to those in their time of greatest need.
By the mid 1950′s, significant progress in sanitation, immunization, and the introduction of new wonder drugs ushered in the belief that people could live to an old age. Because of this, hospitals needed to adapt their business model. The ability to treat disease through innovative medical and surgical interventions catapulted hospitals into the ‘sick care’ business, with this becoming their top priority and how providers would offer additional value to the communities they served.
Fast forward to the 2000’s. The treatment of acute diseases has been replaced by a surge in chronic conditions including: coronary heart disease and diabetes – conditions that if well managed, should not require the traditional services of a hospital. Again, providers needed to adapt to this change and focus more of their attention away from inpatient procedures/interventions, and place more emphasis on outpatient care, connections with primary care, and effective management of service across the full care continuum.
Finally, we arrive at 2015. Scientific advances in both digital technologies and genomics are paving the way for an entirely new role for providers to play. These innovations, coupled with additional external pressures – such as changing customer expectations and changing payment models (if in the US) – place us in the middle of the next business model advance. Instead of being in the ’sick’ business hospitals are discovering that their greatest value lies in the ‘healthy’ business – becoming a partner to a family for life and being a convenient provider of prevention services, healthy living support, and proactive, personalized disease management.
What does this new model look like? Join BMI’s Healthcare Expert Leslie Wainwright on Aug 30th to learn more. During this webcast participants will learn about different ways healthcare organizations are adapting their business models during this pivotal time in American Health Care.
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