HFMA January 1, 2018
NEW COMPETITORS AND NEW TECHNOLOGIES ARE MOVING TO UPEND THE HEALTHCARE INDUSTRY. TO PREPARE, TRADITIONAL HEALTHCARE ORGANIZATIONS CAN USE STRATEGIES OF THE INTERNET ECONOMY.
In some industries, disruption occurs in a major swoop. Blockbuster went from generating more than $5 billion in revenue in 2008 to being bankrupt in 2010, thanks in large part to management’s inability to get ahead of streaming and on-demand video.a Borders went from a $100 million profit to a $150 million loss within one year, and was bankrupt three years later, thanks to Amazon’s aggressive moves with e-commerce and e-books.b
In the Internet economy, disruption is not the exception but the rule. Large, fast-moving companies with innovation in their DNA and access to cheap capital...