One of the coolest aspects of my job is that I get to meet and interview a lot of smart people.
A lot of real smart people. People such as Kay Plantes, an MIT-trained economist, author and expert on business model innovation.
Plantes recently predicted the next big wave of innovation in health care.
"As a nation we pay more for health care than other nations yet achieve worse health outcomes. The three to six extra GDP percentage points we pay in healthcare costs are needed for infrastructure, education, federal R&D investments and our pocketbooks. We pay more because payers exert too little pressure on providers relative to other nations; and weâ€™ve historically paid providers to do procedures versus improve health. In addition, many consumers are sheltered from cost and do not know the relative cost or quality of providers," Plantes wrote.
"Capitalismâ€™s competitive forces disrupt markets that are inefficient or serve customers poorly. Wal-Mart disrupted Main Street retail, Staples disrupted local office supply businesses, Google disrupted Encyclopedia Britannica and Appleâ€™s iPhone and iPad disrupted Microsoftâ€™s Windows. Disruption creates greater benefits at lower costs for consumers. Products, categories, companies and entire industries can be disrupted.
"The only barrier to disruption is crony capitalism, of which our nation has too much. If we can keep people healthier, identify health issues earlier, and treat health issues less expensively while still as expertly, we can move the needle on health care costs. Every other industry is figuring out how to do more for less while enhancing customer well-being. Health care, government and higher education, three sectors in need of radical reinvention, are ripe for disruption. A number of driving forces are weakening the forces of crony capitalism in health care, with technology being a key one."
Almost as if on cue, one day later at the Worldwide Developers Conference, Apple senior vice president of sof…Read more...