The document discusses how disruptive innovation can decentralize healthcare through three sentences of disruption. Generalist physicians and technicians will disrupt specialist physicians and healthcare providers. Patients will also disrupt healthcare providers as decentralization through disruption increases accessibility and leads industries like travel, real estate, automotive, and others to provide services directly to consumers. Established companies that do not adapt to new technologies through business model innovation risk being disrupted like vacuum tube manufacturers were by transistors.

1. The Innovator’s Prescription:How Disruptive Innovation Can Fix Health Care Jason Hwang, M.D., M.B.A. Executive Director, Healthcare jhwang@innosightinstitute.org

2. Centralization followed by decentralization in computing

3. Disruptive Innovations Time Decentralization through disruption leads to accessibility 60% on $500,000 Sustaining innovations Performance 45% on $250,000 Time 40% 20% on $2,000

4. Decentralization is common in service industries Travel booking Real estate transactions Automotive sales Retailing Accounting and tax preparation Banking and investing

5. The decentralization that follows centralization is only beginning in healthcare Specialty care Laboratory services Imaging services Clinical research and training Data collection and warehousing Surgical suites

6. It is often futile to cram new technologies into old business models Path taken by established vacuum tube manufacturers Major Established Electronics Markets: Tabletop radios, floor-standing televisions, computers,telecomm.equipment, etc. Performance Portable TVs (1959) Pocket radios (1955) Hearing Aids (1952) Time Technological Enabler: Transistors vs. vacuum tubes

7. Future Disruption of Health Care Delivery Facilitated User Networks Value-Adding Process Businesses Solution Shops Generalist physicians disrupt specialist physicians Technicians disrupt health care providers Patients disrupt health care providers

8. The Innovator’s Prescription:How Disruptive Innovation Can Fix Health Care Jason Hwang, M.D., M.B.A. Executive Director, Healthcare jhwang@innosightinstitute.org