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Segmenting Healthcare into “Luxury” and “Value” Brands… Thoughts On Not Getting Stuck in the Middle.

A few months ago, I wrote about how healthcare is poised to segment according to cost and service levels– and that we will likely begin to see healthcare brands emerge that appeal to price-conscious consumers looking for reliable, basic care. My suspicion was that US healthcare is now facing its “Southwest Airlines” moment, where nimble and lean competitors will soon undercut inefficient legacy ...

Global Capitation: The Three Less-Obvious Vulnerabilities for Health Systems Considering Global Payments

I receive a fair number of emails and Linkedin messages from healthcare executives who are interested in global risk contracts and are looking for a some advice from the provider side. Here’s what I usually tell them: Global risk can be a very good thing for both patient care and for margins– but it’s a ...

The “Religion of Big Data” in Medicine: Will Getting More Granular Help Doctors Make Better Decisions?

I’ve been thinking a lot about “big data” and how it is going to affect the practice of medicine.  It’s not really my area of expertise– but here are  a few thoughts on the tricky intersection of data mining and medicine. First, some background: these days it’s rare to find companies that don’t use data-mining and predictive ...

A Flood of Medical Information Has Overwhelmed the Craft Business of Medicine: What’s Next?

If recent popular posts on the big physician blogs are any indication, some US physicians are beginning to crack. Three of the most read recent posts on KevinMD are on the topics of physician burnout, knowing when to quit medicine and—frighteningly– on the conditions that lead physicians to suicide. Along with my now quotidian experiences interacting with ...

Pricing Risk: What Margin Should Risk-Bearing Healthsystems Reasonably Expect?

There is an old adage in the business world: reward follows risk. In other words, in an ideal market, investors are supposed to balance the potential returns of an investment against the possibility that they’ll lose their money. I’ve thinking a lot about risk recently as our organization came to the end of our budget ...

$84,000 to Treat Hepatitis C: Making Hay While the Sun Shines

There is an interesting angle to the ongoing tooth gnashing over the price of Sovaldi, Gilead Science’s breakthrough oral antiviral therapy for Hepatitis C. For those unfamiliar with the drug, Sovaldi is a recently approved treatment for chronic Hepatitis C that costs ~$84,000 and up for a course of therapy in the US (depending on ...

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Consumers are Linking Budget Airline Itineraries: Will They “Virtual Interline” Medical Services Too?

A few weeks ago, WOW Air, an Icelandic budget airline, announced that they would be flying Boston-Reykjavik at an introductory fare of $99.  Despite the growth of budget airlines in both Europe and the US, WOW is apparently the first airline to try to make a margin on trans-Atlantic routes. WOW argues that smaller planes (made possible ...

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