Disrupting the healthcare industry: 7 highlights

Written by Megan Wood | March 07, 2016 | Print  |

Researchers from the University of Toronto Department of Medicine, Toronto, Ontario, Canada-based Mount Sinai Hospital and Cambridge, Mass.-based Harvard University, predict the healthcare industry will witness a disruption similar to Uber entering the taxi industry, according to Medscape.

New England Journal of Medicine published their perspective article in the March 3 issue.

 

Here are seven highlights:

 

1. The researchers recommend providers embrace innovation, and use it to enhance quality and efficiency.

 

2. Unlike the taxi industry, the healthcare industry is protected from some disrupters due to web regulations, contractual obligations, interlocking financial interests and political influence.

 

3. However, the industry should be aware of disruption filling the gap between what consumers want and what they are getting.

 

4. The healthcare industry isn't immune to disruption, because several barriers to entry could be removed without risking patient safety. The article's authors name the following as removable barriers to entry: "state-based licensure, country-specific board certification and educational prerequisites that prolong training."

 

5. The authors mention Theranos, ZocDoc, Intarcia Therapeutics, Oscar Health Insurance, Proteus Digital Health and 23andMe as venture-funded companies that already disrupted the industry by providing value.

 

6. The industry will always hold on to some aspect of its strong regulatory mechanism, however, to protect public health.

 

7. The barriers to entry in the healthcare industry remain stricter than most, as violations bring severe penalties.

 

More articles on practice management:
What role do consumers think technology should play in healthcare? 5 takeaways
Remote orthopedic care: Can it be quality & cost effective? 5 things to know
8 key notes on healthcare provider placements in 2015

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