A recent article published by ECG Management Consultants discusses how disruption is spreading across the healthcare space.
Editor's Note: This article orginally appeared on ECG's website.
Disruption is evident throughout society these days, and the healthcare industry has not been spared. Look no further than the recent CVS deal to acquire Aetna or UnitedHealth’s Optum acquisition of 300 medical clinics from DaVita. The CVS acquisition concentrates market power across different spectrums of healthcare, and Optum’s deal makes it look more Kaiser Permanente– like every day—but without the drag of hospital assets. Add to this the recent headline “Amazon, Berkshire Hathaway and JPMorgan Team Up to Try to Disrupt Health Care,”1 and it becomes clear that disruption is part of the transformation agenda for the future. These transactions support the argument that disruption is just beginning in healthcare. As Christiansen has outlined,2 disruptive innovation tends to come from outside a given industry. None of the three new entrants to healthcare has a real track record in this field. Their motivation in attempting to reduce costs is largely based on the huge expense that healthcare represents to them and their employees. Click here to continue>>
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