The last wave of innovation in the U.S. health care marketplace crashed and essentially went nowhere, according to David Dranove, Walter J. McNerney Professor of Health Industry Management and Chair of the Strategy Department at the Kellogg School of Management. In terms of provider consolidation, what’s different today? Dranove discusses this question with Lee Sacks, Executive Vice President and Chief Medical Officer of Advocate Health Care, and Fiona Scott Morton, Theodore Nierenberg Professor of Economics at Yale University School of Management. Private exchanges are the most disruptive change apart from the Affordable Care Act, says Sacks. Morton points to stalled income growth, high health care prices, and a consensus among providers that something must change.

From the NEJM Catalyst event Innovation in Health Care Leadership: The New Health Care Marketplace at Northwestern University, June 4, 2015.