Professional Documents
Culture Documents
Candyce Thompson
Candyce Thompson
Candyce Thompson
MMI 407
Fall 2009
article, Herzlinger examines areas of innovation in health care and points out
some underlying causes for the ailing healthcare system in the United States.
advances, but the packaging and delivery of treatment are often inefficient,
Discussion
improve health care as well as costs. These innovations influence the way
consumers buy and use health care, involve technology or generate new
innovation that organizations need to overcome and six forces that have an
customers and accountability. In the article, Herzlinger mentions how all too
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Candyce Thompson
MMI 407
Fall 2009
dollars along the way, stating “the disastrous outcome of the managed care
revolution, the $40 billion dollars lost by investors in biotech ventures and
I think that Herzlinger makes some valid points, and I can see where
these concerns would have been huge at the time that she wrote this article.
She gives great examples to illustrate her points regarding why she thinks
controversial and she does not provide current facts, statistical or numerical
data to support her article and her claims. Herzlinger makes many statements
that are very argumentative, controversial and at times, take things out of
context. Herzlinger mentions medical error rates that do not take into
more information regarding the patient’s state of health when medical errors
and death rates are referenced. Herzlinger does not provide statistics on the
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Candyce Thompson
MMI 407
Fall 2009
information, choices, and control. In the article, Herzlinger states that there
are three groups that oppose CDHC. These various groups allege that
“CDHC will favor the rich; screw the sick and the poor; lead to the
market; and create even worse problems than we currently have in accessing
the system.”3 Instead, consumer control will reward insurers and providers
for creating services that are higher in quality and lower in cost. According
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Candyce Thompson
MMI 407
Fall 2009
Workers fret about the quality of care they receive, the burden of out-of-
pocket expenses, and gaps in coverage for long-term care, prescriptions and
proposition. You pay way too much, and you get way too little.”4 This is
part of the basis that the author uses when she shares her beliefs regarding
the health care system of America and its future. Herzlinger says that all
Americans will be covered in the health care system in the near future.
Unfortunately, we have not agreed how we will get to the point where every
economy and that third party agents are not good at purchasing health care
of the mess – and the key lies with the business community. If companies
are willing to embrace a new model of health coverage – one that places
control over cost and care directly in the hands of employees – the
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Candyce Thompson
MMI 407
Fall 2009
tried to do, consumer-driven health care would work from the bottom up,
care.”6 This sounds good and if the world were perfect, it would be a great
know how Herzlinger would make the Consumer Driven Health Care system
happen. She illustrates the issues, but I don’t see how America can make
author, the CDHC believes that the organizational structure in the health care
industry places inefficient barriers between consumers and the best available
care for medical ailments. The CDHC thinks that there is no need for
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Candyce Thompson
MMI 407
Fall 2009
market entry and price monopoly that exist or poor health care.
deductibles before the insurance policy begins to pay. There have been
many discussions regarding the health care crisis in American and the
will now lose exemptions if they do not carry health insurance. The author
deductible plans are common in the private health insurance sector, but are
Many customers let their auto insurance policies lapse, when they
can’t make the payment or can no longer afford the coverage. This same
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Candyce Thompson
MMI 407
Fall 2009
thing would happen for low-cost, high deductible insurance. Herzlinger does
not make it clear if health care insurance coverage would work the same in
that one could be dropped from coverage when claims are filed with the
accessible and using this to help cut the cost of rising health care.
Herzlinger has some valid points, they are not very relevant to healthcare
consumer) will determine the quality and cost of healthcare. Still, Herzlinger
does not provide all the pieces to the puzzle. She does not give her definition
of what good care is for all, which I am sure will not fit my definition of the
kind of care that I want for my family. Besides, I don’t want good care, I
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Candyce Thompson
MMI 407
Fall 2009
centralized health care data clearinghouse. Herzlinger does not address the
fact that health care does not meet the conditions necessary for efficient
Patients don’t really know the cost of medical care. The consumers that have
knowledge also have insurance and they expect the insurance companies to
take care of the medical bill. The consumers that don’t have insurance
normally don’t have it because they can’t afford it, so when the medical bill
arrives, what patient who can’t afford to pay the bill really worries about
care of ourselves and our health. Today, the internet helps to provide us
sources of information and tools that we can use to gain access and
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Candyce Thompson
MMI 407
Fall 2009
doctor visits, inpatient and outpatient care, prescription for medication and
risk assessment tools and personal health records are now available online.
being paid a flat salary by an HMO, who may be less interested performing a
may not cover the cost of the time to implant, resulting in income loss.
The author mentions Health Stop’s failure because of competition with the
local community doctors and nonprofit emergency rooms. There have been
many health care entities that offer these services now. In today’s world,
well as convenient. These new medical center and organizations are now
able to thrive. They offer services that customers want and it’s quick and
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Candyce Thompson
MMI 407
Fall 2009
and are less intimidating as well. Today many hospitals have extensions
known as urgent care centers and these can be located in remote areas where
Conclusion
innovation, but I believe that we can make health care easier, not hard. There
are many contradictions and controversial issues in the article that I think
Patients can become proactive and use preventive healthcare measures and
thus reduce healthcare cost. Hospitals and clinicians can use new technology
empowering them to control some facets of their health care and health
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Candyce Thompson
MMI 407
Fall 2009
information will certainly help. There are so many things that we can do as a
nation. The process is slower that we would like, but certainly, there is
information regarding disease and treatment and now when patients visit
doctors and nurses, they are more informed and they ask more questions.
Many patients have begun to be proactive and take responsibility for their
own health. We realize that we have a longer life expectancy and it would
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Candyce Thompson
MMI 407
Fall 2009
Endnotes
12
1
Herzlinger, Regina E., Why Innovation in Healthcare is So Hard, Harvard Business
Review 2006; 84:58-66.
2
Herzlinger, Regina E., Why Innovation in Healthcare is So Hard, Harvard Business
Review 2006; 84:58-66.
3
Herzlinger, Regina E., Who Killed Healthcare? : America’s $2 Trillion Medical
Problem, and the Consumer-Driven Cure, McGraw-Hill Companies, 2007; 181-217.
4
Herzlinger, Regina E., Let’s Put Consumers in Charge of Health Care, Harvard
Business Review 2002; 80:44-50.
5
Herzlinger, Regina E., Let’s Put Consumers in Charge of Health Care, Harvard
Business Review 2002; 80:44-50.
6
Herzlinger, Regina E., Let’s Put Consumers in Charge of Health Care, Harvard
Business Review 2002; 80:44-50.
7
Herzlinger, Regina E., Why Innovation in Healthcare is So Hard, Harvard Business
Review 2006; 84:58-66.