Health_care_446

Health_care_446 - Health
Care
Business
Model
...

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Unformatted text preview: Health
Care
Business
Model
 Discussion
 MIS
446
 Health
Care
is
Enormous
 •  $2.5
trillion
in
U.S.
alone
 •  17.6%
of
U.S.
GDP
 •  ’99‐’09:
employer
health
premiums
up
119%
 Health
Care
is
Broken
 •  1.5
million
families
lose
houses
to
foreclosure
 because
of
medical
debt
 •  62%
of
bankruptcies
linked
to
medical
 expenses
 –  80%
had
insurance
 •  U.S.
#1
in
health
care
spending
per
capita
 •  U.S.
#28
in
life
expectancy
 Overspending
 Source:
OECD
 74
 75
 76
 77
 78
 79
 80
 81
 82
 83
 84
 Underperforming
 Life
expectancy
at
birth
(years)
 2007
UN
Data
 Japan
 Iceland
 Switzerland
 Australia
 Canada
 France
 Israel
 Italy
 Spain
 Sweden
 Austria
 Netherlands
 NZ
 Norway
 Singapore
 Belgium
 Chile
 Costa
Rica
 Cyprus
 Finland
 Germany
 Greece
 Ireland
 Korea
Rep
 Luxembourg
 Malta
 UAE
 UK
 Cuba
 Denmark
 Kuwait
 Portugal
 Slovenia
 USA
 Barbados
 Brunei
 0
 1
 2
 3
 4
 5
 6
 7
 8
 Infant
mortality

 (deaths
per
1,000
live
births)
 2007
UN
data
 Underperforming
II
 Iceland
 Liechtenstein
 Luxembourg
 Singapore
 Andorra
 Cyprus
 Czech
Rep.
 Finland
 Italy
 Japan
 Monaco
 Norway
 Portugal
 Slovenia
 Sweden
 Austria
 Belgium
 Denmark
 Estonia
 France
 Germany
 Greece
 Ireland
 Israel
 Korea
Rep
 Malta
 Netherlands
 San
Marino
 Spain
 Switzerland
 Australia
 Canada
 Croaaa
 Cuba
 New
Zealand
 UK
 Hungary
 Poland
 Thailand
 Latvia
 Lithuania
 Serbia
 Slovakia
 UAE
 USA
 Current
Business
Model
 •  •  •  •  Value
proposiaon
 Profit
formula
 Key
resources
 Key
processes
 •  Major
market
failure:
paaents
are
not
 customers
 Goals
in
Conflict
 •  Cure
the
hardest
diseases
 –  Teaching
hospitals
lose
money
 •  Prevent
preventable
condiaons
 –  Public
health
metrics
lag
 Barriers
to
Disrupaon
 •  •  •  •  Economic
interest
 Force
of
habit
 Regulaaon
 Logic
of
collecave
acaon
 –  Smallest
number
of
enaaes
in
a
value
chain
step
 has
lowest
coordinaaon
cost
 Disrupaon
Comes
From
Below
 •  Paaents
 •  Physicians’
assistants/nurse
pracaaoners
 •  Automaaon
 –  Diagnosis
 –  Treatment
 –  Monitoring
 –  Billing
 •  Big
fight:
whose
data
is
it?
 Weak
Signals
 •  •  •  •  •  $34
billion
on
alternaave
treatments
 Instrumented
self
 The
big
base
of
the
pyramid
 Peer
to
peer
networks
 Lighthouse
health
systems
 –  Kaiser
 –  Geisinger
 –  Intermountain
 Alternaave
Treatments
 Source:
U.S.
CDC
Naaonal
Center
for
Health
Staasacs,
2009
 Instrumented
Self
 Instrumented
Self
 The
Big
Base
of
the
Pyramid
 Video
 Peer
to
Peer
Networks
 Principles
of
Disrupaon
 •  Serve
underserved
market
 –  Radically
low
price
point
 •  Distribute
infrastructure
 –  Contrary
to
economies
of
scale
 •  Informaaon
challenges
priestly
classes
 –  Protestant
reformaaon
 –  “Doctor
knows
best”
 •  Match
capabiliaes
to
needs
 ...
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This note was uploaded on 04/06/2010 for the course MIS 446 at Penn State.

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