Innovating in Healthcare Creating Breakthrough Tech, Services, Drugs, Products, and Business Models

by Herzlinger, Regina E.

• ISBN13: 9781119543008
• ISBN10: 1119543002
• Edition: 1st
• Format: Hardcover
• Copyright: 2023-01-25
• Publisher: Wiley

Summary

Create breakthrough services, products, and business models

Innovating in Healthcare offers effective approaches for designing, reworking, and implementing innovative healthcare services, products, and business models. It will help anyone working in healthcare service or product development, from hospitals to startups, to question the status quo in healthcare and implement new solutions that lower costs while increasing both quality and access.

Globally, healthcare faces a threefold crisis of unsustainable economics, erratic quality, and unequal access. Just in the U.S., healthcare accounted for 18% of the 2017 GDP and will likely reach nearly 20% by 2025, while hospital-induced deaths have skyrocketed, and tens of millions of people remain uninsured. This book will focus on creating the innovations in healthcare that can meet these needs.

• Written by the world's leading authority on healthcare innovation
• Includes success stories in every segment of the health care sector
• Presents and applies the Six Factors in the environment that critically affect healthcare innovation
• Guides the reader through tailoring a business plan specifically for the new business

Designed for healthcare executives, providers, and degree students, Innovating in Healthcare is a comprehensive guide for maximizing the viability of a new healthcare product, service, or business.

Author Biography

Regina E. Herzlinger is the Nancy R. McPherson Professor of Business Administration at the Harvard Business School. She was the first woman to be tenured and chaired at Harvard Business School and the first to serve on many corporate health care/medical technology boards. She initiated the courses in health care at HBS and was the first faculty member to be selected by the students as their best instructor. In 2018, she was awarded the prestigious ACHE Honorary Fellowship which represents the leaders of America’s hospitals and was 1 of the 100 Most Influential People in Healthcare – World Edition by Grupo Midia. In 2014, she launched a Harvard MOOC (Massive Open Online Course), on Innovating in Health Care and in 2013, a continuing series of conferences, “21st-Century Health Care Management Education: Confronting Challenges for Innovation with a Modern Curriculum,” sponsored by a group she formed, GENiE (Global Educators Network for Health Care Innovation Education), which has supported the many schools that have introduced courses/programs on Innovating in Health Care. Regi earned her BS degree at MIT and her Doctorate at HBS.

Table of Contents

Introduction

How I Can Help You Achieve Your Entrepreneurial Goals

Regina Herzlinger: Healthcare Entrepreneur

Part I: How Innovating in Healthcare: Creating Breakthrough Services, Products, and Business Models Will Make You a Successful Healthcare Entrepreneur

Chapter 1: Three Pillars That Drive Healthcare Innovation Success or Failure

Pillar One: Successful Healthcare Innovations Identify What Type of Innovation They Are

Pillar Two: The Six Crucial Factors in Business and Government

Pillar Three: Finding the Right Business Model Elements for Your Innovation

Lessons Learned from My Successful and Failed Entrepreneurial Experience

When One of the Three Pillars Fails

Part II: The Three Types of Healthcare Innovations That Can Make Healthcare both Better and Cheaper

Chapter 2: Technology-Commercializing Innovations: Why They Are Needed and Key Success Factors

The Value of Medical Technology Innovation

Advancing Care through Medical Technology Innovations

Key Success Factors for Technology-Commercializing Innovations

Connecting Islands of Information with Digital Technology

Chapter 3: Consumer-Facing Innovations: Why They are Needed and Key Success Factors

Consumer-Facing Innovations That Empower Patients

Consumer-Facing Innovations That Reduce the Time Needed to Access or Coordinate Care

Responding to Slow Consumer Adoption of Innovation and Their Faddiness

Chapter 4: Cost-Cutting Innovations: Why They are Needed and Key Success Factors

Cutting Costs By Creating New, Lower Cost Organizations

Cutting Costs by Integrating Existing Firms

Cutting Costs Within Existing Organizations

PRACTICE: Cost Cutting Innovations

Chapter 5: Categorizing the Three Types of Innovation: When You Don’t Know What You Are

The Consequences of Not Knowing What Type You Are

Chapter 6: How the Three Pillars Can Drive Successful Healthcare Innovations in the Battle of the Bulge

The Three Pillars and The Battle of the Bulge

Why Hospital-Based Surgery for Morbid Obesity Is Successful: Type of Innovation, Six Factors, and Business Model Strengths

Six Factors and Business Model Weakness of Other Innovations for Addressing Morbid Obesity

Part III: Six Crucial Factors in the Business and Government Environment and How They Affect Your Innovation

Chapter 7: The Six Factors: Healthcare Industry Stakeholders and How Their Agendas Affect Your Innovation

Critical Questions About the Six Factors That Affect Innovative Healthcare Ventures

Chapter 8: Structure: Who Are Your Friends? Who Are Your Enemies? How to Align With Them?

The Structure Factor’s Impact on Cost-Cutting and Consumer-Facing Innovations and How to Align With It

The Structure Factor’s Impact on Technology-Commercializing Innovations and How to Align With It

Chapter 9: The Financing Factor: How to Find the Money for Innovation

Reimbursement

Capital Financing

Chapter 10: The Technology Factor: How to Avoid Being Legally Outmaneuvered

Meet the FDA

FDA Regulation of Medications

FDA Regulation of Manufacturing and Advertising /Promotion

FDA Regulation of Medical Devices

FDA Regulation of Digital Health Technology

Selling Medical Devices in the EU

Tests of Efficacy of Diagnostic Devices

Meet the U.S. Patent and Trademark Office

Patent Infringement

Chapter 11: How to Evaluate the Commercial Viability of New Healthcare Technologies

Checklist for Evaluating Innovative Health Care Technologies

Conclusions: Using the Checklist to Evaluate Two New Healthcare Technologies

Chapter 12: The Accountability Factor: Proving That Your Innovation Works

Accountability for Consumer-Facing Ventures

Accountability for Cost-Cutting Ventures

Accountability for Technology-Commercializing Venture

Managing the Accountability Factor: Just Do It!

Chapter 13: The Public Policy Factor: How to Dance With It Whether You Like It or Not

Public Policy Process Dynamics

Examples Of How Public Policy Affects The Three Types Of Ventures And How To Influence It

How to Use the Other of the Six Factors to Influence Public Policy

Chapter 14: The Consumer Factor: Understanding What They Want and Don’t Want- They’re Not a Nuisance

Meeting the Needs of Unhappy Healthcare Consumers

How the Consumer Factor Affects the Three Types of Healthcare Innovations

Practice: Ole! Mexican Medical Tourism and the Consumer Factor

Chapter 15: How to Manage the Impact of the Six Factors on the Three Different Types of Health Care Innovations

Technology-Commercializing Innovations

Consumer-Facing Innovations

Cost-Cutting Innovations

Practice 1: La Ribera’s Alignment with the Six Factors

Practice 2: How Does Your Venture Align with the Six Factors?

Part IV. Build the Right Business Model: How To Make It Happen

Chapter 16: An Overview of the Ten Elements of a Business Model and Step 1: Some Caveats

Step 1: Three Caveats

Chapter 17: Steps 2 and 3:What Type of Innovation Am I? How Does My Innovation Align With the Six Factors?

Conducting Market Research To Identify the Type of Innovation

Practice: What Type of Innovation is the Sleep Deprivation Firm?

Chapter 18: Step 4: Strategic Market Assessment

Practice: Strategic Market Assessment for Sleep Deprivation

Chapter 19: Step 5: Creating Competitive Advantage

Product/Price Competitive Barriers to Entry

Timing Competitive Strategies

A Managerial Competitive Startegy: Building A Culture That Your Competitors Find Difficult To Emulate

An Economic Competitive Strategy: Vertical or Horizontal Integration

Legal Competitive Strategies

Practice: Competitive Strategy for the Sleep Deprivation Venture

Chapter 20: Step 6: Financial Viability—Break-Even Analyses

Calculating a Break-Even Point

Financial Viability of Sleep Deprivation Program

Additional Applications of Break-Even Analysis

Chapter 21 Step 7: Managerial Assessment

Evaluating a Potential Hire’s Background

Questions That Identify The Good, The Bad, And The Ugly CEO Candidate

Chapter 22: Step 8: Sustainability

Revenue Sustainability

Cost Sustainability

Management Sustainability

Chapter 23: Step 9: Valuation Analysis—How Much Is The Venture Worth? Who Will Finance It ?

Determining the Valuation of the Sleep Deprivation Venture

The Healthcare Business Cycle and Its Effect on Valuation

Exit Strategy

Chapter 24: Practice: Analysis of the Impact of the Six Factors on the Valuation of Alexion Pharmaceuticals

Chapter 25 Step 10: Societal Impact—Does the Venture “Do Good”? Is It Too Good to Be True?

How to Determine “Good”?

When Is An Innovative Healthcare Venture Too Good to Be True?

Chapter 26: Practice: How to Evaluate Your Business Model

Checklist and Weighting of Elements of the Business Model For an Innovative Healthcare Venture

Practice: Analysis of a Business Model

Chapter 27: Growing a Successful Innovation

First Steps: Stick to Your Type of Innovation

The Three Growth Strategies for Mature Businesses

Chapter 28: The Future

Acknowledgments

About the Author

Index