Clayton Christensen
Professor of Business Administration, Harvard Business School

Clayton Christensen on Healthcare Pioneers

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The Harvard Business School professor talks about how is changing the healthcare industry.

Clayton Christensen

Clayton M. Christensen is a professor of business administration at the Harvard Business School. He is the bestselling author of five books, including his seminal work, The Innovator's Dilemma, which received the Global Business Book Award for the best business book of the year, and most recently, The Innovator's Prescription, which examines how to fix our healthcare system. Christensen serves on several public and privately traded boards and is the founder of a successful consulting company and an investment management firm. He holds a B.A. with highest honors in economics from Brigham Young University and an M.Phil. in applied econometrics and the economics of less-developed countries from Oxford University, where he studied as a Rhodes Scholar; he received an MBA with high distinction from the Harvard Business School in 1979, graduating as a George F. Baker Scholar, and was awarded his DBA from the Harvard Business School in 1992.


Christensen:    Let me talk about providers that are organized in a way that enable them to deliver the right care at the right price.  There’s a set of providers that we call an integrated fixed fee provider, and that is, these people employ their own doctors so the doctors can be compensated by keeping their patients well, not when they get sick.  And they charge their patients, they charge their members a fixed annual fee and then provide whatever care is needed within that fee.  But that means that the organization itself profits from keeping the patients well, whereas most of healthcare, the only way you can profit is when the patient gets sick.  So, Kaiser Permanente in Northern California is one of these.  Inter Mountain Healthcare in Utah and Idaho looks like that.  Geisinger in Pennsylvania looks like that.  The Mayo Clinic is structured like that.  And they’re the ones I think that are best positioned to execute the kind of disruption that has to occur.