Health care is on the verge of disruption. New services and products will offer patients and providers low-cost options at convenient times and locations. Some disruptive forces will harm incumbents, while other forces will create new opportunities.
We asked David Ridley, Dr. and Mrs. Frank A. Riddick Associate Professor of the Practice and Faculty Director of the Health Sector Management (HSM) program, to comment on impending disruption in the health care system-a preview of some of the topics covered in "Navigating Health Care Trends," an Executive Education course that David will be facilitating May 17-20, 2015.
What forces will disrupt health care providers?
Disruption will come from the introduction of new providers and products. In the provider space, competition will come from home and abroad. At home, retail clinics (such as Minute Clinic) will offer more low-cost options at convenient times and locations. In neighboring countries, including some in the Caribbean, U.S. providers will also face competition from providers such as Health City Cayman Islands.
What forces will disrupt healthcare manufacturers?
Manufacturers will be disrupted by technologies with expired patents and low prices, such as store-label medical devices (including replacement hips and knees from Cardinal Health) and biosimilars (copycat version of biologics).
What's the best approach for understanding disruption?
Health care is interconnected, and yet we rarely leave our "silos" and have candid conversations with one another. To understand disruption requires understanding how the parts of health care interact. For example, to understand demand for new "generic" products -- such as store-label hip implants or biosimilar medications -- we must understand the incentives created by payers for providers and manufacturers.
How should we deal with disruption?
Some incumbent manufacturers and providers will try to block it. They will lobby for more regulation and licensure. This will slow disruption but ultimately won't block it. Incumbents should also see the opportunities for partnership. For example, whereas some providers try to block retail clinics, others partner with them. Likewise, some biotech firms advocate for more regulation of biosimilars, while others are planning to sell biosimilars (and some manufacturers are taking both approaches at the same time!).
You can join the discussion about disruption and more May 17-20, 2015, by enrolling in the "Navigating Health Care Trends" Executive Education program. The program is taught by some of Fuqua's world-renowned faculty who specialize in the field of business and health care, a health policy expert from Duke's Sanford School of Public Policy, and a former CEO of Roche Pharmaceuticals, NA. Learn more.
Fuqua alumni are eligible for a 25% tuition reduction for Navigating Health Care Trends and other Executive Education programs. Contact us at +1.919.660.8011 or firstname.lastname@example.org for more information.