Brookings March 17, 2015
Despite accounting for more than a sixth of the U.S. economy, the health-care sector has provided notoriously poor value for money. It’s populated by providers, insurers, and other institutions which, like the saurians of an ancient epoch, are bloated, wasteful, and seemingly impervious to disruptive innovation. But that’s now changing. Like mammals scampering under the dinosaurs’ feet, disruptive entrepreneurs and investors are gaining a foothold in the market.
In his latest paper, Jonathan Rauch profiles these change agents and shows how they are not merely occupying a new niche in health care’s business ecology but actively cultivating and expanding it. By creating business models that make money by keeping people healthier and reducing waste, they are commercializing the creation of...