Disruptive Innovation Essay

637 WordsMay 27, 20123 Pages
Executive Summary The problem that disruptive innovations will address is the delivery system used by America health care. The dominant models used are general hospitals and physician practices. They are viewed as being inefficient which does not give perfect outcomes. The medical systems today deliver care in an ambulatory setting that use to require a visit to the hospital. The system has been hinder by the existing payers of the reimbursement centers. The use of disruptive innovations can be use to help end the crisis of the health care delivery system. This will require a change in the reimbursement practices of the payers and attitudes of the healthcare system providers (Glabman 2009). The medical system uses a number of innovations that do not require high levels of expertise. The payers of health care need to change their policies on how items are reimbursed. The policies should reward the use of precision in the diagnostic abilities of test and providers. The result will be a policy that encourages the use of disruptive innovations that have proven to be more precise and lower cost. A number of insurance companies have established reimbursement incentives to encourage the use of some innovations. The practice is not uniformly accepted and is getting backlash from the established organization which see this as a treat to their financial well being. This backlash can be contained with a commitment from all parties. The use of new delivery methods of care, precision testing, technology and business practice will help. There are also legal issues that concern insurance companies and organizations that may occur by the use of some of these innovative practices. The industry need to be educated as a hold to see how all parties involve will benefit from the use of these disruptive innovations. The disruptive innovations in the article are being practiced and
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