Jonathan Rauch, a senior fellow of governance studies at the Brookings Institution, compared it to evolution: When something no longer works, the system will come up with a more efficient beast. Providers and insurers have had to adapt quickly to value-based revenue models, leveling the playing field because everyone is new at this type of business, he wrote in the Brookings Brief.
The increase in the quantity and quality of healthcare data and analytical tools has also empowered startups that would not have been possible a decade ago, Mr. Rauch wrote. More business-oriented individuals are branching into the healthcare industry to examine new innovations, diversifying the base of healthcare professionals and encouraging existing healthcare organizations to innovate and compete, he said.
“In a sector as large and complex as healthcare, change won’t come overnight,” Mr. Rauch wrote. “Still, investors, entrepreneurs and executives herald the upending of long-lived business practices as ‘transformational,’ ‘incredibly exciting,’ and an ‘explosion of positive innovation.'”
