In the last decade, many business models have changed. For example, anyone predicting the popularity of on-demand videos over live TV was not taken very serious before the breakthrough of Netflix. Never in history have entrepreneurs developed more new business models than in the last ten years. Yet, when we look at healthcare, the model of care has barely changed. New care business models are critical elements to making healthcare sustainable.
Traditional care
Healthcare has always been supply-driven. We use the available care facilities, and we organise care based on the availability of the clinicians. This situation results from a combination of circumstances. Historically, a village often had only one general practitioner. The monopoly of the GP created a dependency on the people towards the GP. The fact that GP is more educated than the average population is a second element that strengthens the dominant position of the GP. With the appearance of hospitals, we have seen a similar evolution for specialist physicians.
The assumptions of scarcity and knowledge are the root causes of the current situation and the dominant position of clinicians. Of course, physicians will always remain more knowledgeable than the patients in medicine, but the powerplay will become ancient history. More and more patients are also conscient consumers. These consumers find it increasingly difficult, for example, that very few physicians can stick to the schedule of consultations. This example, together with other frustrations of patients, leads to a transformation of healthcare delivery.
New care business models
New care business models are developed for a wide variety of reasons. In some cases, patients look for other services than the current offering. In other cases, organisations find ways to create more value. Sometimes, the business model does not match the strategy of the organisation. A more recent example is when you don’t find new staff members to support your growth, the solution might be a different business model where you still can grow with your current staff.
As you may have noticed, every situation is different. So for every organisation, we develop a custom business model that fits their specific needs. So the first step is to look at similar organisations around the globe and study how they addressed the situation. Then, based on these similar cases, we develop a comparison chart to quantify how similar these cases including market conditions, legal requirements, funding differences, etc. This chart is our starting point for creating a new care business model. Next, we present this model, including a transition path from the current to the future operating model to the organisation. Finally, after the approval by all relevant stakeholders, the implementation can start.
Help to change
Healthcare delivery will change. That’s a fact. But changing an organisation from the inside is more complicated than it seems. It has nothing to do with the people in the organisation. The willingness to change is not lacking. It has everything to do with biases and blind spots. When working in an environment every day, you become unconscious of some elements of your work. That is why it is easier to get help from outside to implement change.
Coverton developed expertise in aligning healthcare providers to new ways of delivering healthcare. Let us help you to remain relevant in healthcare. Contact us to change your business into a new care business model.
Other topics
Maybe you are interested in healthcare innovation, healthcare strategy or value-based healthcare.