Fostering positive-sum competition to breathe life back into the healthcare ecosystem
Fee-for-service models are familiar to all of us. In healthcare, we are generally charged for every procedure that a doctor or clinician performs, even if it doesn’t have a positive outcome. Focused entirely on the here and now and characterized by higher costs, fewer services, errors and quality differences, this model is facing plenty of scrutiny as we move toward more integrative, personalized care.
The quandary of misplaced competition
The main issue of today’s fee-for-service healthcare delivery model is that it has kicked competition to the curb by default. Obsessed with keeping costs low, providers, hospitals, and health networks reward compliance with processes rather than high-quality care. The result is a tangled web of micromanaged players squabbling over the prices of fragmented treatments with little or no responsibility for patient outcomes.
It’s clear that what healthcare players are fighting over isn’t what leads to healthier patients – which, in the end, is exactly what will drive lower costs, innovative new treatments and wider competition that is based on experience and expertise.
By contrast, value-based healthcare models revolve around patients and their medical conditions. This approach focuses on outcomes rather than inputs (treatments) and places the responsibility of good healthcare results directly on the experts who are being paid to realize them.
Hurdles to clear before the big wins
That being said, enabling such a model will take work.
- Providers will need to completely redefine their service offerings and come up with specific strategies for each area of medical practice. They must also deliver healthcare where it is needed most, and structure their businesses to accomplish this.
- Transparent billing frameworks will have to revolve around care cycles to do away with the snowstorm of administrative paperwork that health networks currently use to control costs.
- Even more, health plans must empower patients to choose their own doctors and health plans based on their experience and results.
- At the heart of the matter is data. A comprehensive, accurate and integrated medical history needs to be linked across the entire care cycle.
New innovations in wearable health technologies will be at the core of the healthcare transformation, as they provide the raw data needed to generate holistic overviews of individual health. Without useful, medically relevant raw data and accompanying data processing strategies, it’s impossible to develop full care cycles that lead to positive health outcomes.
Where are we now?
The early bird gets the worm, and the proactive healthcare companies at the head of the pack will be the ones to reap the rewards of an industry redefinition process that is already well underway. It’s too late to turn back, and the changes that have occurred are leading to the competition needed to drive real value improvement.
The Byteflies Sensor Dot helps power the healthcare revolution by providing forward-thinking pharma and medical companies a cost-effective, easy-to-use platform for continuous patient monitoring. Armed with this ability, the sky’s the limit when it comes to developing the new treatment strategies that will differentiate your business.
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