Breaking Down the Healthcare Giant into 3 Distinct Business Models

Ashabil Rizhana

Ashabil Rizhana

Operations Manager

Hey there! Ever thought to yourself, “Why is healthcare so complicated?!” You're not alone. A hospital has a million different things going on at the same time, diagnostics over here, surgeries over there, and oh, let's not forget the insurance madness. Sounds like chaos, right? Well, Clayton M. Christensen’s "The Innovator's Prescription" takes a hammer to this jigsaw puzzle, proposing a radical new picture. 

Check out our YouTube video breaking down Christensen’s healthcare reform solution


The Oh-So-Expensive Juggling Act

Let’s break it down. Hospitals, as fascinating as they are, have gotten themselves into a bit of a pickle by trying to be a jack-of-all-trades. Picture this: a factory churning out one product Vs another pumping out dozens. The second factory’s bills? Sky high. And why’s that? Simply because more services mean more routes the product (or in our case, the patient) must navigate, each adding its chunk of cost. Suddenly, that one-stop shop isn't looking so efficient after all.


Divide and Conquer

Christensen suggests splitting the healthcare behemoth into three distinct entities: Solution Shops, Value-Adding Process Practices, and Facilitated Networks.


1. Solution Shops:

Think of these as OPDs in the current hospital setting. Patients come in, clueless about what ails them, and voila, through a series of tests and expert guesswork, they leave with an accurate diagnosis. But as opposed to the current OPD setting, the patient pays for getting diagnosed and is then referred to a specialty center for treatment.


2. Value-Adding Process:

Now that you’ve got a diagnosis, next comes treatment. But not just anywhere. Imagine a place wholly dedicated to your specific ailment, like a cataract surgery center. It's like having a bakery specializing in only your favorite cookie—efficiency and expertise at their best. Hospitals attempting to cover all bases can't compete with these specialized centers' proficiency and cost-effectiveness. For example, the Shouldice Hernia Hospital minting savings on hernia repairs. 


3. Facilitated Networks:

Lastly, for the long-haul conditions, think chronic diseases, Christensen introduces us to the facilitated networks. A space where patients, doctors, and other healthcare providers will gather and are incentivized to cure the patient as much as possible. Here, a diabetic could learn from another’s journey, or someone with depression could find solace in shared stories. It’s subscription-based, focusing solely on community welfare.


Splitting the healthcare system into these three streamlined paths addresses more than just efficiency; it takes a scalpel to the conflict of interest plaguing patient care today. With diagnosis, treatment, and long-term management housed under separate roofs, there’s no room for the usual suspects of overdiagnosis or overtreatment. It’s a win-win, with patients receiving pinpointed care without a shadow of a doubt regarding their doctor’s motives.


So, What Now?

You might think this all sounds too good to be true, or perhaps too challenging to implement. But here’s the thing—aren't the best ideas often the hardest to bring to life? With "The Innovator's Prescription," we’re not just dreaming of a better healthcare system; we’re laying the groundwork for its reality. 


Lower costs, higher quality, and an unshakeable focus on patient well-being? Where do I sign up?? 

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