What will it take to succeed

1
What will it take to succeed?

• Farrokh Alemi Ph.D.

2
Health care purchasers do not buy software

• Redo the product so that you do not need to
  create the market. Sell to an existing market.

3
Organization's policies on scope of services must
change

• Focus on economies of scale not scope

4
Impact of Scope

• Vertically integrated systems (e.g. Humana) are
  failing.
• Successful integrated systems operated as a shell
  for many focused organizations (British
  Petroleum)
• The fastest growing sector in the US industry has
  been temporary help and contract workers.
• Salick Cancer Clinics in New York, an example of
  focused factory
• Carve-outs not restricted to behavioral health

5
Recruitment and training policies must change
6
Policies on capital purchases must change
7
Policies on the gatekeeper must change
8
Policies on medical records must change
9
Patients' Attitudes Will Change
10
Online is not the same as face to face

• Must reduce transaction overhead costs