Is Healthcare Next?

"Disclaimer - My grammar skills are mediocre at best. So I apologize in advance for any errors!!"

For as long as I can remember, I have listened to and enjoyed music. Music is not just a form of entertainment but an expression of your personality. I'm a classic rock guy who has collected nearly every album by the Rolling Stones but could not tell you one song by One Direction, 50 Cent, or Jason Aldean. Nothing against those artists but it's not my style of music. And I must add the Stones are still awesome. Caught them in Indy during the Zip Code Tour and they still sound incredible.

Even though my taste in music has not changed, how I buy and listen to music has changed dramatically. As a young teen I remember going to the local record store to find that desired record. If you wanted the single "Satisfaction", you paid $1.99 for the 45. If you wanted the entire "Out of our Heads" album, it cost you $7.99. Time went by and so did the music format. We had the 8-track, the cassette, the short-lived laserdisc, and finally the CD. What did not change however was how we purchased music. We went to our local record or electronics store and paid for the music and brought it home to enjoy.

But that's all changed. Over the past 10 years the music industry has gone through a change so significant that it's commonly referred to as a "disruptive change". It's called disruptive because everything about the industry has changed. In other words, the entire user experience is different. Think about it. We no longer go to a store to purchase music, instead we just hit a button on our phone or computer and "wa-lah" we have our music. Almost everything about the music industry changed with the growing popularity of itunes and other digital applications. The production, distribution, release, etc. are very different. Thus a disruptive change. Similar changes have taken place with the movie and publication industries. When was the last time you went to Blockbuster?

Which brings me to healthcare.

Over the past 50 some years, the healthcare experience really has not changed much. We get sick, we go to the doctor. If we need medications, we go to the pharmacy. If we are sick enough, we go to the hospital. Pretty much the same. In the world of pharmacy, we still dispense medications in the same vial that was invented over 75 years ago. But I believe various external forces will bring about a disruptive change in healthcare. Here’s why.

Healthcare Reform - With healthcare reform, organizations are moving from episodic to continuous care. In the old days, once a patient left the hospital, it was pretty much up to the patient and his/her family to monitor and care for his/her health. The hospital really had no incentive to make sure the patient remained healthy. With healthcare reform, healthcare organizations have a ton of incentive to make sure the patient remains healthy. Thus the shift to continuous care.

Emerging technologies - The phone you carry in your pocket really isn't a phone but rather your personal portable computer. The smartphone can quickly "send and receive" information to and from others. It’s a powerful two-way communication device with lots of sensor possibilities. This includes Bluetooth wearables. Think fitness watches. Also different apps can encourage healthy behaviors. i.e. kids with asthma using the microphone on the phone to play a game. The harder you blow, the faster the plane goes. The possible uses of the smartphone to improve two-way communication, and encourage positive behaviors is endless.

Big Data – Big data is here. Back in June my family took a summer vacation to the Outer Banks and Google Maps provided the directions. That’s big data. 99.9% of the worlds knowledge including medical research is available digitally. Thus why not compare current patient conditions with best in practice research. Think about it. Big companies like Cerner and Epic allowing physicians to compare treatment alternatives with research……in real time. In fact this is already beginning. The IBM Watson computer (best known for winning Jeopardy a few years ago) is now working with Memorial Sloan Kettering to provide physician information on treating patients with cancer. Big data in healthcare is here and the applications for using has just begun.

My personal belief is that the forces above will lead to disruptive changes in healthcare. The key question is who will be ready? Do you want to be Blockbuster or Netflix?