Monday, September 26, 2011

Information Players in the Healthcare Industry

Here is one view of an industry map of the Healthcare industry. Because of the many linkages that exist, we see the potential for disruption coming from the players that best use Technology to create and capture value.

Our team will examine companies who are positioned to offer Software and Analytics capabilities. Specifically:
Allscripts (Katy Perkins)
Athena Health (Nader Mousa)
Microsoft (Wishwas Mohan)
Verisk (Eli Mather)
Additionally non-profit institutions have a cause and effect relationship with potential disruptions. Therefore, we will also explore the analytics capabilities of
MassHealth. (Chris Glenn)

Do you agree with our view of the industry? Can you think of other companies that are positioned to enter or exit the industry? Do you think incumbency or capability will win out in the next 5 years?

1 comment:

  1. I don't expect that this thought is new to you, but my initial argument in the incumbency vs. capability war over the next 5 years focuses on stakeholders push/pull of capability.

    For example, last semester we discussed that there is little incentive for small practitioners to spend a large sum of money to implement electronic medical records in their offices, which only reduce the lock-in they have with their clients. It is a lose-lose proposition for them. Within these practices, EMR capability must be motivated by client-pull (demand).

    On the flip side, large organizations may be able to show real ROI on EMR because of reduced overhead of moving records between facilities. The reduced lock-in may not be as important a factor to them. These organizations may push EMR on their clients, whether the clients are willing or not.

    Insurance companies may (perhaps they already have?) find that electronic drug interaction screening reduces the likelihood of certain lawsuits and will reduce the necessary coverage for hospitals / doctors / pharmacies that employ such technology, resulting in an insurance-company push. (You could easily extend that idea to digital diagnosis systems as well.)

    So I have two points. First, the disruption may not necessarily come from the players who actually use the technology; it could come from a stakeholder that interacts with the entity that uses the technology. Second, I don't see incumbency or capability being the key factor in mid-term success, I see strategic stakeholder engagement being a critical capability in navigating the very complex push-pull that will unfold in the coming years. For example, I don't see capability as being a panacea, it depends strictly upon the point of view of the stakeholders of the organization. Think Zara; it's not just technology - it's having the right technology in the right place and not much else.

    I do agree with your view of the industry, although I assume that there are invisible lines connecting all of those entities, in addition to the visible lines you have shown. For example, Drugs and Devices certainly interact with Payers -- as Payers can choose what they will and will not pay for, which influences what Providers use and Patients receive. Clinical Support [software] also interacts directly with Patients, for example I have direct access to my Microsoft Health Vault.

    I'm looking forward to your analysis, this should be an interesting industry to dig into!