American Health Care Industry – Why Innovation is So Difficult

Healthcare industry presently in United States is in miserable condition, the delivery of treatment to consumers is often inefficient, ineffective and consumer unfriendly. The problems in the sector had been well documented and they range from medical errors, which by some estimates contribute around 8 percent of all deaths in United States, soaring cost of health care administration, the amount of time one get an appointment with the physician and inadequate facilities.

Why there are no innovations in the industry to improve it

Despite enormous investments in innovation and magnitude of the opportunity for the innovators, not many people are willing to invest in the industry. The reasons are numerous but one of the primary reasons is failing of too many efforts. Not many companies have able to translate their paper plan in the real world. One example of a massive failure is, managed care revolution that ended up losing $40 billion of investors’ money into biotech venture and into endeavors of achieving economies of scale to fragmented physician practices.

How we can improve present state of American health care industry

The idea of universal coverage is in rounds in public domain for years now, and there are no signs that Bush administration will take such restructuring of the system. The second solution to the problem is to focus on particular areas rather than solving the problem at once. These areas can be chosen carefully by the company according to its expertise and core competency. Some of the areas to focus which companies can zero down on are –

Innovations in the delivery of health care can result in more convenient, effective and less expensive treatments for today’s time stressed and increasingly empowered health care consumers.

New Drugs, diagnostic methods and drug delivery system can offer the hope of better treatment and care at lesser cost.

Healthcare is still astonishingly fragmented industry and integrated health care activities can increase efficiency, improve care and save consumer time.