High barriers of entry due to expertise disparities and a lack of transparency makes one of the largest industries in the American economy difficult to predict or react to. With doctors and high-ranking chemists possessing all the bargaining tools and the average American desperately needing their services prices are often astronomical. Despite this protection provided by governmental boards and an ever-growing pool of information are beginning to pull the curtain back on the medical industry. Christensen talks about 3 major reasons that the average person may believe that disruptive innovation doesn’t have a place in the medical industry.
The first of these reasons is the idea that consumers blindly trust their doctor’s judgement. This states that if medical professionals are aware of the tools and practices the price of health care will naturally decline. Technological advancements in the field therefore should be centered around the previously existing trends currently set by industrial leaders. This of course is objectively false and disproven by the constant advancements that we see in the availability of medications and first aid supplies that previously would’ve been much more expensive. One must only look throughout the local pharmacy to find the ever-growing supply of over the counter medications that can be used to treat minor illnesses. By pairing this with the almost unlimited information at the consumers disposal through the internet, a person can self-diagnose and treat themselves in a way that was almost unthinkable previously.
The second factor is the myth that customers are risk averse with their health. Unlike some tangible goods this idea states that people are less likely to partake in risky behavior when it effects their health. This can be disproven by the plethora of activities that many of us participate in every day. Anything from not wearing a seatbelt to drinking and smoking all negatively affect our health. People are willing to risk their health if they understand the risks or believe they do. Entrepreneurship saves lives in the medical field everyday through studies and advancements in technology. The final idea put forward is the idea of the social good. Health care should not only be as widely available as possible, but the care should also be the top quality. It is important to consider how the definition of quality changes based on the type of treatment that is needed by the patient. In the case of major illnesses, in depth care and accuracy is required. In the case of smaller injuries and illnesses convenience and price become more important. One solution I have to this problem would be creating a larger pool of professionals with the capability to prescribe non controlled prescription drugs. This can be done by allowing pharmacists and nurses to treat patients and using doctors for referrals on more difficult cases. This would increase the supply of treatments and thus decrease the price. Insurance then should only be used specifically for acquiring prescription medications and for serious injury or illness. This would essentially make health insurance like car insurance. Rather than using your insurance every time you need an oil change you could use it when you have an accident. This would reduce monthly and annual spending in the health care industry and give consumers a better idea of the costs of treatments.
Tom Green Entrepreneurial Blog 