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Abstract

Disruptive Innovation and Challenges in Healthcare 3.0

“Disruption” describes a process whereby a smaller company with fewer resources is able to successfully challenge established incumbent businesses. Disruptive innovations are made possible because they get started in two types of markets that incumbents overlook. Health care is changing at a rapid pace, moving from a system that rewards volume to one that promotes and rewards value. At the same time, forces such as the rise of consumerism and the new digital economy are forcing even greater changes in the way health care is delivered and how providers interact with patients. These massive transformations make the health care field ripe for disruptive innovations as entrants from inside and outside of health care look for new ways to deliver services and new services to deliver.

This disruption is not just limited to small start-up companies. In recent months, we’ve seen a deluge of mergers announced, with CVS and Aetna announcing plans to merge and Wal-Mart reportedly in talks to merge with Humana. Companies such as Amazon, Apple and Berkshire Hathaway have made waves with new potential health care alliances and ventures. And more is on the horizon. The healthcare industry has also undergone massive disruptive process from Health 1.0 to 3.0 and the technologies and challenges associated with it.


Author(s):

Sandhyamika Devi



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