DISRUPTING HEALTHCARE - WHY MANY FAIL

by Chai
08 February 2021

This last week I had discussionswith a non-health entrant and an international MBA class) on why disrupting the healthcare system is not easy. I used the recent demise of Haven as an example that deep pockets, enviable connections, and influence are not enough to bring about the change we need in healthcare.

It is interesting, though, that faced with the current existential threat fromCOVID 19, many "stalled innovations" have been unleashed. Genomic sequencing, virtual health consultation, digital apps for contact tracing, new diagnostics, and new platforms for vaccine developments hold the promise that perhaps we are on the cusp of a sustainable and enduring disruptive change. While some of these current disruptions are here to stay, but to-date they have made no noticeable impact on important challenges like equity, affordability, and access". Some could argue that they have made it worse.

The difference between the failed Haven initiative and the COVID 19 fuelledunleashing of stalled innovations is that the former was deliberate. The latter was a reaction to an existential threat.

In his recent post "Strategy that didn't fix healthcare," John Singer" made the point that" perhaps everyone is trying to crack the wrong problem". Trying to fix the cost problem without also addressing the production and delivery of health services is an important point made in his post. He points out that we should not simplistically try to separate public health from economic health. He offers an important observation of a new strategy - New Strategy comes from the ability to artfully see and select combinations of capabilities from across a vast assemblage of resources and then intentionally cohere them on a market-shaping roadmap to achieve desired effects across multiple domains simultaneously and interactively. It's about creating, managing, and leading with an ecological sensibility. There is a lot in his observation that future "disruptors" should take heed of. My take on what John is saying is as follows:

  1. Select carefully which part of the health system you intend to disrupt
  2. Understand the ecological interdependence of the “market” you are disrupting
  3. Have a clear roadmap for actions (create, manage and lead) to support the passion and vision
  4. Find the right networks of partners and capabilities needed

All of the above four are important guiding principles. But the real test is making wise decisions and selections when the time comes. Those wishing to be future disruptors of healthcare fundamentally need to have and share the right purpose, motivation, patience, and courage. These are the "soft" stuff that a future new network of disruptors needs to pay attention to, especially at the beginning of their journey together.


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