Disruptive innovation: a new diagnosis for health care's "financial flu".
Financial difficulties are threatening many healthcare organizations. To survive and target new markets of growth, strategic decision makers need to adapt existing business frameworks using the principle of disruptive innovation, which involves framing financial problems in a manner that incorporates changes in the marketplace and redefines solutions. Rather than emphasizing technological advances to capture shrinking, highly competitive markets, healthcare providers should consider the possibility of reaching largely untapped sources of revenue through a service line that is more convenient and less costly to consumers with less intensive needs.
Kenagy
John W
JW
University of Washington, USA. jkenagy@hbs.edu
Christensen
Clayton M
CM
D004465:Economic Competition; D005376:Financial Management / Q000379:methods* / Q000639:trends; D019981:Health Care Sector; D006298:Health Services Administration / Q000191:economics* / Q000639:trends; D009936:Organizational Innovation; D009937:Organizational Objectives; D010934:Planning Techniques; D011340:Problem Solving; D011357:Product Line Management; D014481:United States