The Disruptive Force of Technology in Healthcare

ByWayne Caswell Updated:
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A LinkedIn discussion of mHealth argued that, “Technology is Just a Tool. It’s Not The Solution to Healthcare’s Problems” — I couldn’t disagree more and posted this response…

Those in the Ivory Tower should worry about the disruptive force of technology in healthcareMy Editorial Opinion

Okay, Technology is not the end-all, but it’s MUCH MORE than just a tool for solving healthcare’s problems. The accelerating pace of tech innovation is a disruptive force that’s breaking business models and helping to move us away from the fee-for-service model that’s primarily responsible for Americans spending twice as much as those in other advanced nations for healthcare. (See Moore’s Law and the FUTURE of Healthcare.)

Those at the top of the healthcare mountain, especially those resisting more rapid adoption of disruptive technology, are most at risk of obsolescence. As noted in 101 Minitrends in Health Care, 429 of the original [1955] Fortune 500 companies are no longer in business today.

As medical devices keep getting cheaper, smaller, more accurate, and easier to use; more & more functions once associated with doctors in hospitals will move down-market toward consumers at home, office or wherever they are. Telehealth video calls and telemedicine sensor monitoring will extend across town, across state lines, and across international borders as payers (including Medicare) realize that medical tourism often offers better outcomes at less cost.

All of these trends will democratize healthcare, increase competition, and help move the emphasis away from sick care and toward health & wellness. As Benjamin Franklin said, “an ounce of prevention is worth a pound of cure.”

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3 Comments

  1. RELATED ARTICLES:

    Amazon, Walmart and Best Buy quietly entered Healthcare market to disrupt an industry resisting change. The big winner? Consumers. (Inc. September 2019) I COMMENTED:

    TRENDS — This trend of retail clinics, telehealth phone consults, home healthcare visits, and home delivery matches up perfectly with what I’ve written about for five years. As medical devices keep getting smaller, cheaper, more accurate, and easier to use, many medical functions will move downmarket from physicians in doctor offices to consumers at home.

    RESISTANCE — Healthcare CEOs, who invested in political influence to reinforce their perverse profits and currently sit at the top of the mountain, now look down with fear at the tech innovators hungry for disruptive change.

    WHY — Americans are sick and tired of spending twice on healthcare as other advanced nations, and they’re demanding change. If they can’t get it politically, because this industry cartel owns the politicians, they’ll seek change elsewhere, giving companies like Amazon, Walmart, and Best Buy a giant sized opening. Those wanting to disrupt US healthcare, cut spending in half or more, and save $1.5 trillion/year, or more, need to know “Why American Healthcare is So Expensive” in the first place.

    3 must-haves to hit telehealth’s tipping point (AMA December 2019)

    I’m surprised to see the AMA support telehealth rather than block it as they’ve done before. Maybe they’re seeing it as inevitable and the only way to compete with new entries like Amazon, Walmart, and CVS that combine technology with retail clinics and local sale of prescription drugs and medical devices.

    As I wrote years ago, the exponentially accelerating pace of tech innovation is making medical devices cheaper, smaller, more accurate, and easier to use. That trend is enabling disruptive new business models as more & more work of doctors in offices moves down-market to consumers when and wherever they are.

    Medical industry incumbents still need to worry about telehealth across state lines and international borders as the tech makes that easier, less expensive, and more convenient, because foreign telehealth services may someday become safer and more expensive if U.S. alternatives aren’t competitive.

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  3. Kristine Thiessen says:

    *What a GREAT take on the relationship between technology and healthcare. I couldn’t agree more with you that we are finally, FINALLY moving towards preventative and less intrusive care. There are a lot of really great devices out on the market now that help the elderly and disabled and that’s just the beginning. I hope over the next couple of years we see a drastic increase in these products and their ability to help take care of people in their own homes. Thanks for posting! 

    K. Thiessen, BS

    http://www.homehealthgear.com

    Reply

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