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Innovation in Healthcare: Why is it so difficult?

It’s been singled out as the problem holding innovation back for an array of industries and causes. But here’s something you may not have heard before:

People’s fear isn’t the reason that innovating within healthcare is difficult.

Instead, change in the healthcare industry is difficult because it is, above all, complicated. The system has many moving parts — all of which have different objectives and incentives, making change slower and the climb, steeper. If we’re talking effect, it’s not as simple as one cause — or two or three, for that matter. In the case of reform, change will apply to a collective system made up of several independent, yet interdependent elements. So in this case, change isn’t happening because it’s scary, it’s stalling because interests just aren’t aligned.

But believe it or not, innovation can start with healthcare companies, not just legislation. Those companies at the top of the healthcare industry know that innovation is imperative and furthermore don’t need convincing that the future is already here.

Healthcare InnovationEnter a more personal, preventative and proactive healthcare system.

It’s a well-known fact that weight and age-related health problems are costing the healthcare system — and the American people — a fortune. With an aging population and growth in chronic diseases such as diabetes and congestive heart failure, Americans will continue to drive up the overall costs to the healthcare system which accounts for about 16% of GDP and rising.

So what’s the innovative solution?

In order to sort this out, in-home and remote healthcare will become imminent. The concept of maintaining health, of understanding that it requires upkeep and monitoring instead of damage control, will require connectivity to clinical providers between check-ups.

This innovation is necessary to bring technology and services outside the bricks and mortar of the hospital and clinics and into non-traditional settings like the home. With these systems in place, providers will be able to detect changes in conditions sooner, which will ultimately prevent costly emergency room visits. This shift in location and frequency will in turn shift healthcare to lower cost settings.

But connectivity alone won’t create a better system. Driving behavioral change in patients is equally important. As more of the costs shift to the consumer and their pocket books, patients’ incentives to make these changes will rise. New mobile apps, personal health records, educational tools, medication compliance management tools, etc. will become fundamental to enable people to better manage their personal care.

And the companies that develop the tools and services to facilitate this kind of change? They will be driving innovation — and the entire industry, forward.

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Tags : healthcare industryinnovation in healthcareinsurance innovationmobile apps


Discussion:    Add a Comment | Comments 1-5 of 5 | Latest Comment

February 9, 2010 2:46 PM updated: February 9, 2010 2:56 PM

My business goes some way to bridge the gap for health, convenience and technology. I have an established on-line Dietetic Company that provides evidence based nutritional/medical advice worldwide. Consultations are via a web-cam and are at flexible times evenings and weekends included. They accommodate the housebound, the busy business man, the mum with childcare issues to name just a few. It saves the client travel time, it is a paperless system and is environmentally friendly with low carbon footprint. The health benefits are enormous for the simple use of some knowledge and technology.

February 10, 2010 10:21 AM

As you stated Michael change is definitely imminent in healthcare and there are many technological advances either recently brought to market or in developement that will radically change both the way healthcare is administered and documented. The critical element here is to empower innovation throught tax incentives and grants and not wait for the government to legislate change. There are creative ideas waiting to be productized that are out searching for funding in an uncomfortable environment and even with the money that is available now through grants the process delays the ability to execute. The consumer must demand innovation and the system must be prepared to accept it.

February 13, 2010 2:31 PM

Not sure about this. The problem is that the incremental change is so different in chronic disease than for aggressive health conditions. Isn't the best customer the repeat customer? Aren't chronic sufferers the best customers? Solving their issue or issues are typically impossible, but managing can be something that can have some success. The two other outcomes, complete remission or death, are not something that can be dealt with by taking a pill, an implant, or check-ups.

So if we in this this consumer driven society truly do want choices, we will have to live with those choices.

February 14, 2010 3:32 PM

Robert said: Not sure about this. The problem is that the incremental change is so different in chronic disease than for aggressive health conditions. Isn't the best customer the repeat customer? Aren't chronic sufferers the best customers? Solving their issue or issues are typically impossible, but managing can be something that can have some success. The two other outcomes, complete remission or death, are not something that can be dealt with by taking a pill, an implant, or check-ups. So if we in this this consumer driven society truly do want choices, we will have to live with those choices.
That's an interesting point Robert - creating a win-win for patient and caregiver is going to be key for any major policy or business model changes going forward.

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December 27, 2010 9:23 PM updated: December 27, 2010 9:45 PM

Because mostof them finds the offer new prospects for cost savings and improved quality of care, but expensive new technologies are also driving medical inflation and the benefits may not always be distributed equally.

Meryl

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