Can Business Model Innovation Help Health Care Delivery

The world is changing very quickly and this change is affecting almost all fields of life and healthcare is no different. Experts around the world are doing many different things to improve the quality of healthcare delivery. They are also adopting new models that have been massively successful in other industries and in the healthcare to some extent as well. One such method is Business Model Innovation. In this webinar, Stephen E. Chick has discussed various challenges as well as opportunities this very model offers in terms of improving healthcare delivery procedures.

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The Impact of Business Model Innovation on Healthcare
Healthcare institutions across the globe face common challenges and the innovation seems to be the obvious solution. Innovation offers a lot of benefits but it creates certain problems for the healthcare sectors as well. However, you need to see Business Model Innovation much more closely as it has the potential to help healthcare service providers to better serve their clients.

Business Model Innovation is all about thinking creatively, strategically and having a learning organisation that helps people to reorganise the types of resources we have, the way our process are configured and the information is processed so that we can provide healthcare better.

Trends Prevailing in Healthcare:
Healthcare sector is changing and evolving, giving rise to new challenges and trends with the passage of time. Some of the important trends prevailing in healthcare are as under.

  • Medical and technological innovation which is changing healthcare landscape completely. For example, the pharmaceutical industry is coming up with wonderful new treatments and equipment industry with great technology.
  • This is the age of information and every other person has easy access to whatever he wants to know. This has put extra pressure on healthcare sector as well.
  • The healthcare demographics are also changing as people’s expectations are constantly on the rise. For instance, healthcare providers focus more on chronic diseases such as diabetes in certain areas whereas in other regions, they focus on diseases like cancers and HIV/AIDS.
  • Financial problems and difference in supply and demand have also compelled countries and healthcare providers to change their mental models and adopt more innovative and creative methods to improve healthcare.
  • More and more doctors are doing specialisations in certain fields and the scope of services is also broadening.
  • Globalisation has resulted in isolation of individuals, mixing of cultures and changed social norms and all these factors play heavily on the minds of healthcare experts while providing services to the masses.

Increasing Health Problems and What to Do Next:
Even the developed countries like United Arab Emirates are suffering from acute healthcare problems. For instance, diabetes is spreading like an epidemic in UAE in particular and Arab world in general, creating a sort of crisis situation. Therefore, the important question is how countries can overcome such problems?

One line of action is to increase the overall efficiency of the healthcare institutions but being more efficient is not enough. Some countries have also resorted to rationing that is they provide healthcare according to certain procedures. Some experts also advocate the idea that people should lower their expectations and should not ask much from the healthcare institutions that are already under immense pressure to perform.

Doing things very differently is another approach that can help healthcare service providers to meet the expectations of the masses. As per IOM quality report released a decade ago, working harder will never get the job done but changing the healthcare systems will. We need to change the systems by doing the right things and the easy things. We do not need to create new systems but recreate the ways we work within existing structures.

Is Innovation the Answer?
Innovating processes have become an integral part of almost all the organisations. For instance, the innovation is taking place in almost everything ranging from development of new X-Ray machines to genetic engineering when it comes to healthcare sector. But, is innovation is producing the desired results and what is the return on capital thrown in innovation processes?

According to various researches, it is very difficult to be successful simply by introducing new or better products or spending more money on research and development (as indicated by following figure) and this is where business model innovation comes to the rescue.


Companies like Dell and Apple have used this process to maximum advantage. Dell in particular did not invent any new nothing and didn’t create a new market as well. They only denounced the traditional working style and reorganised their systems. This had a huge impact on their overall revenue and same can happen in the healthcare sector as well.

There are many other examples of companies who have successfully and profitably adopted business models innovation such as Toyota, IKEA, Ford and Amazon etc and healthcare sector can follow suit. It cannot only help healthcare providers to reduce operating cost but will also help them to provide better services to ever cynical customers.

There is no denying of the fact that other sectors have used innovation quite successfully but healthcare sector lags far behind. A lot still needs to be done in this regard if healthcare sector wants to attain same levels of success when it comes to providing quality services to its clients.

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