Clayton Christensen on Healthcare Pioneers

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. 

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

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