Where Are the Health Care Entrepreneurs? The Failure of Organizational Innovation in Health Care

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Where Are the Health Care Entrepreneurs? The Failure of Organizational Innovation in Health Care

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Title: Where Are the Health Care Entrepreneurs? The Failure of Organizational Innovation in Health Care
Author: Cutler, David M.
Citation: Cutler, David M. 2010. Where are the health care entrepreneurs? The failure of organizational innovation in health care. Innovation Policy and the Economy 11(1): 1-28.
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Abstract: Medical 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.
Published Version: doi:10.1086/655816
Terms of Use: This article is made available under the terms and conditions applicable to Open Access Policy Articles, as set forth at http://nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#OAP
Citable link to this page: http://nrs.harvard.edu/urn-3:HUL.InstRepos:5345877

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  • FAS Scholarly Articles [7608]
    Peer reviewed scholarly articles from the Faculty of Arts and Sciences of Harvard University
 
 

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