Health Orgs Dooming Their "Innovation" To Failure

Dave Chase | Forbes | June 15, 2013

Healthcare organizations are rapidly trying to reinvent themselves in light of the new rules of the game. One could argue it officially started October 1, 2012 with Medicare’s readmission penalties. People are calling this the “no outcome, no income” era. While it may look the same from the outside, I can’t think of a bigger change facing an industry. Almost overnight, what a healthcare provider was previously rewarded for (e.g., ordering tests, hospitalizations, etc.) they will now get penalized either directly or indirectly.

In my role introducing patient relationship management systems, I’ve had the opportunity to speak with and observe many “Innovation” organizations that have been set up in virtually every health system in the country (and most health plans and pharma as well). The innovation groups have been established to respond to the daunting changes their organizations are facing. Unfortunately, the way they are being setup are practically guaranteeing they will fail to prepare organizations for healthcare’s trillion dollar disruption.