We’ve all watched digital innovators demolish certain industries: video and record stores, neighborhood movie theaters, travel agents. A one-time #18 on the Fortune 500, photo film giant Eastman Kodak was felled by digital photography. But some industries and players successfully fend off digital competitors and incorporate their innovations into their daily operations. An Economist article observed that even though most banking has moved online, the average large bank is 138 years old. Walmart, the world’s largest brick-and-mortar retailer, is also the second-largest online retailer.
Why the Tech Industry Won’t Disrupt Health Care
Digital transformation will most likely come from established health systems. Here’s what they need to do.
February 16, 2024
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Summary.
At first glance, it looks like health care in the United States is ripe for disruption. Digital technology advances have the power to help address the shortcomings of care delivery: It costs too much, its quality isn’t what it could and should be, and millions of people live hundreds of miles from the nearest hospital and/or don’t have a primary care doctor. But for many reasons, the incumbents — established health systems — will be extremely hard to displace. Instead, the winners will be health systems that team up with digital tech companies.