In an era of transition to value-based care, and consumer-based decision making, a medical innovation that lowers costs is worthy of a lot of interest, which Theranos has certainly received.
Another reason to fear Walgreens
Currently, Theranos operates just 22 lab locations, one at its headquarters in Silicon Valley and the others at Walgreen pharmacies in California and Arizona. Walgreens has partnered for a nation-wide rollout in a “substantial” number of its locations across the country. Holmes wants one within five miles of every American home.
UCSF Medical Center, Dignity Health and Intermountain are all currently in talks with the company, to use its low-cost methods at its facilities as well.
UCSF CEO Mark Laret told Fortune, “This is the true transformation of healthcare, right here in front of us.”
And indeed it is.
Medicine is one of the few industries plagued with innovation that drives costs, rather reducing them — which is the norm in nearly every other industry. The cost of the average hospital stay rose 90 percent in 10 years, driven largely by new technologies that are then incorporated into the cost of care. That’s remarkable, and remarkably concerning given the demands rising healthcare costs place on our government and patients. So, when a medical innovation cuts cost significantly, that is remarkable too, and hospitals, investors and providers should take note. Some of the biggest names in Silicon Valley and public service certainly are.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
