Why Is Healthcare Lagging Behind Other Industries in Terms of Technology?

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There's a famous paper written by Professor [xx] and David Cutler called 'Where are the Healthcare Entrepreneurs?', written back 2010, [xx] asked this question, a little bit of a different format. So look every major American's dream where there's been huge value creation opportunity, has eventually been invaded and transformed by our spinners, [xx] within our technology except for healthcare, so you say what the heck is going on in healthcare, so there is lot of different reasons based, really there are fundamentally two primary reasons.

The first is that the incentives have been all wrong that, the way healthcare has been paid for has been fee for service, right? So you get paid as a provider per doctor visit, per hospital, per surgery, right? So you get paid per volume, you don't actually get paid for health improvement, you actually get paid for value.

So if you invest in some kind of technologically enabled system or process to help people proactively stay healthy and avoid the complication, at the [xx] hospital that's actually punished, that's punished by this cheaper service system. There's a negative business case for doing it, which makes it impossible for providers to adopt.

So that's a problem. Secondly, the information required to create value, right? To actually drive health improvement has been locked away. It's been sitting in manila folders on the walls, in the doctor's office, it's been inaccessible to the patients. Information on what works better or doesn't work better, has been kind of mysterious, unknown, locked away and so this is the problem.

You have economic system for value creation, health improvement is often punished when information required power is locked away. Other than that everything is fine. So, those have been two huge obstacles at present date health to make it better. Up the good news say Catter is that if you can reverse the polarity on those two conditions, watch out but the entrepreneurs will invade like nothing you've ever seen.

And the great news to report is that in the past few years, the polarity is beginning to reverse, we are beginning to move [xx] [xx] from paper going to paper value made people healthy across more and more of the country and secondly, the information required to help produce that value is becoming available right, the [xx] can do electrons, right, providers can make much more use of it in that form, patients can get be able to access to their own information securely, general information like open up the A provider quality measurement, our ratings becoming more and more available and so you got the conditions are merging to aim the bet.

Entrepreneurship, technological [xx] [xx] and sure enough, I wouldn't see huge jumps enough activity and health care and I help IT activity, invest in a couple of investment and help IT with large and so it's a very certain time.