Why Tech Isn’t Disrupting Health Care Yet

In a world where technology has changed many industries, like entertainment and retail, it’s surprising that health care hasn’t been completely transformed by the tech revolution. While some may assume that the data-driven nature of health care makes it ripe for digital disruption, the reality is far more complex. Despite the pressing need for change in U.S. health care — characterized by high costs, suboptimal quality, and limited access — the industry has proven resilient to radical transformation by tech-savvy newcomers.

But why hasn’t the tech industry upended health care as it has done with other sectors? The answer lies in several unique characteristics of the health care landscape that present formidable barriers to disruption:

1. Fragmentation and Complexity: Health care involves a web of interconnected players with intricate relationships. Patients, employers, doctors, insurance companies, regulators, suppliers, and support services all play a part in health care. It’s hard for new players to figure it all out, which makes changing things a big challenge.
2. Ambiguous Business Models: Unlike traditional profit-driven industries, health care straddles the line between profit-making and charitable endeavors. Not-for-profit hospitals must balance financial viability with social responsibility, complicating the adoption of profit-centric tech innovations.
3. Local Brand Loyalty: Established health systems often boast strong local brands built over decades or even centuries. These institutions serve as trusted pillars within their communities, making it difficult for new players to sway patients away from their familiar providers.
4. Time-Intensive Approval Processes: Innovation in health care must withstand rigorous scrutiny and validation from regulatory bodies and medical associations. Clinical trials, regulatory approvals, and payer acceptance prolong the time it takes for new technologies to gain widespread adoption.

Despite these formidable barriers, the need for change in health care remains urgent. Incumbent health systems must adapt to evolving demands by embracing digital innovations while leveraging their existing strengths. Successful strategies for health systems include:

1. Tech Partnerships: Collaborating with tech giants and electronic health record companies allows health systems to harness cutting-edge technologies such as AI and big data. These partnerships enable transformative applications in patient care and administrative efficiency.
2. Digital Health Innovation Programs: Investing in and incubating digital health startups empowers health systems to shape the direction of technological advancements. By providing funding, expertise, and facilities, health systems accelerate the development and adoption of innovative solutions.
3. Partnerships with a Digital Foundation: Teaming up with chain retailers equipped with digital platforms fosters continuity of patient information across care settings. By sharing data and resources, health systems and retailers enhance patient care while attracting and retaining customers.
4. Consortia: Collaborative efforts among health systems and digital startups drive the development and implementation of novel health technologies. Consortia facilitate collective innovation and research, leading to scalable solutions with widespread impact.

Basically, the future of health care is about blending physical and digital aspects. If health systems use technology to improve, they can solve old problems and give better care to patients. When health care providers and tech companies work together, it can change how care is given, making it better, easier to get, and cheaper for everyone involved.