Where Are the Health Care Entrepreneurs? The Failure of Organizational Innovation in Health Care
AbstractMedical care is characterized by enormous inefficiency. Costs are higher and outcomes worse than almost all analyses of the industry suggest should occur. In other industries characterized by inefficiency, efficient firms expand to take over the market, or new firms enter to eliminate inefficiencies. This has not happened in medical care, however. This paper explores the reasons for this failure of innovation. I identify two factors as being particularly important in organizational stagnation: public insurance programs that are oriented to volume of care and not value, and inadequate information about quality of care. Recent reforms have aspects that bear on these problems.
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Bibliographic InfoPaper provided by Harvard University Department of Economics in its series Scholarly Articles with number 5345877.
Date of creation: 2010
Date of revision:
Publication status: Published in Innovation Policy and the Economy
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