New Marketplace
Clip
Innovation vs. Imitation: Staying Ahead of the Game (03:21)

How can health care innovators avoid falling prey to the curse of not actually being the one that reaps the value their innovation ultimately creates? How can they get customers to stay with them instead of moving to a new competitor?

“The way we win is by having a health system–grade product,” says American Well’s SVP of Corporate and Business Development, Jeffrey Kosowsky. American Well has had to turn down business because of competitors giving away their product for free, but free doesn’t necessarily mean the highest quality. “We work at that by making sure that we’re delivering something much better,” Kosowsky says. In health care, you can’t afford to give away a poor-quality product that breaks — an attitude that has won American Well back a lot of business.

It’s also critical to keep in mind the exponential growth that can occur when your innovation takes off, notes Kosowsky, and to make smart business decisions based on that possibility — including conserving your cash. “You can be the greatest innovator and not be around to reap the rewards at the end,” he says. “So it’s very critical to our strategy to make sure that we don’t only win today but that we save enough powder to really win at the end.”

“Our goal is to transform health care — that’s why we’re doing this,” adds Iora Health CEO Rushika Fernandopulle. “If we can get people to learn from us, imitate us, get inspired by us, that’s a great thing. We will have met our goal.” But, he adds, Iora Health is only 1% of a trillion-dollar market. “As long as we continue to evolve the model and do things better than other people, we will continue to have a market,” Fernandopulle says. “If we don’t, we ought not to have a market. It’s really that simple.”

From the NEJM Catalyst event New Risk, New Business Models held in Boston, October 6, 2016.

More From New Marketplace

What Is Risk Management in Healthcare?

Healthcare risk management comprises the systems and processes employed to uncover, mitigate, and prevent risks in healthcare institutions. Understand its purpose, elements, the risk manager’s role, and more.

ED Telehealth Express Care Service Patient Room

Revolutionizing the Delivery of Care for ED Patients

How the NYP OnDemand Emergency Department Telehealth Express Care Service reduced stay times and revisit rates in one year.

Targeting Unconscionable Prescription-Drug Prices — Maryland’s Anti–Price-Gouging Law

Why, in the early 21st century, are so many drugs that were cheaply available in the 20th century becoming prohibitively expensive?

The Economics of Indication-Based Drug Pricing

What would indication-based drug pricing accomplish?

Controlling the Cost of Medicaid

Both political parties should support policies that focus on incentives as a mechanism for improving and sustaining their value.

Resetting the Nation’s Health Care Quality Agenda

Poor measures of care quality have consequences. The National Quality Forum is essential to creating measures that are valid and reliable.

Untapped Business Opportunities for Entrepreneurs in Delivery System Reform

Opportunities for Private-Sector Entrepreneurship in Health Care Transformation

Two veterans of public service say that government can do only so much — which creates attractive business opportunities for entrepreneurs.

Moving Past the EHR Interoperability Blame Game

Why can't EHRs talk to one another? We never created the right incentives, but we pretend that we did.

Emerging from EHR Purgatory — Moving from Process to Outcomes

What's the effect of the mode of physician payment when it comes to EHRs?

Reframing Analytics: Transforming Insights into Action

Centralizing clinical data for an integrated delivery system revealed a surprising lesson: sometimes predictive analytics are not enough.

Connect

A weekly email newsletter featuring the latest actionable ideas and practical innovations from NEJM Catalyst.

Learn More »

Topics

Aggregators, Innovators, and the Resurgence of…

A perspective on the growth of NPPs and the ideological divide between for-profit and nonprofit…

Value Based Care

179 Articles

Personas of Leadership in Value-Based Care

The deliberate nurturing of specific types of leadership personas seems to be a critical factor…

Survey Snapshot: Seeing Progress in Transparency,…

NEJM Catalyst Insights Council members agree that despite the challenges and caveats, transparency efforts are…

Insights Council

Have a voice. Join other health care leaders effecting change, shaping tomorrow.

Apply Now