Monday, December 5, 2011

Healthcare Industry Network Diagram

Here is the Network Diagram for the firms that we are analyzing in the healthcare industry. The firms that we focused on are in blue.
First off, it is worth noting that the five companies (Versik Healthcare, Philips Healthcare, Microsoft Health, Allscripts an AthenaHealth) are from different subsectors of the industry, including EMRs, analytics, and medical devices. This makes for a fragmented diagram. The multiple offshoots with few connections also indicate that the healthcare industry in general is not well connected through strategic partnerships. This offers many opportunities as the industry matures into a networked economy. For example, EMR providers may want to form partnerships with payers so they can provide decision support to their customers, and also absorb the analytics layer which we discussed previously.


  1. "Electronic Medical Recording" represents a growing trend in Healthcare. Yet, the industry will miss a big opportunity if it does not adopt the EMRs at a faster rate.
    This idea becomes crystal clear if we look at the industry stack simply because EMRs, as a part of the IT component of the stack model, is linking most of the other layers of Healthcare especially patients, providers, regulators and payers.
    Cloud based EMRs will substantially increase the efficiency of the current network and act as a hub for the other entities and layers.

  2. We are also seeing a trend where more IT firms are becoming the connecting firms between the different players in the Care delivery stack ( This is mainly because, the different players in the Industry are relying more and more on the information generated. Information currently is fragmented and is in different forms with different stake holders (like the providers, Insurers, etc). This presents a huge opportunity for the IT firms like IBM, Microsoft and Google to aggregate this information and generate revenue streams not just from this information but also from the platform which can be built on top of this data layer.

    In summary, IT firms will become the main link between the different firms in the network by tapping the information flow and will hence become more and more important in this eco-system. The application layer will be opened up for smaller firms just like what we see in the Mobile Apps world today.


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