Healthcare In 2014: Innovate Or Be Left Behind

Healthcare has a new face. Between the sweeping policy reforms, the influx of technology, and the care model innovations, healthcare doesn't resemble the industry it was even five years ago. Patients are different, too. Better informed by nearly instant access to health information and resources, the tech-savvy healthcare consumers of today expect their care to be just as convenient, and just as wired.

In 2013 alone, physician and hospital use of health IT more than doubled. A recent study by Intel revealed that patients overwhelmingly are ready to see technology play a greater role in their care. Nearly three-quarters of those surveyed report that they'd consider using technologies like ingestible monitors that collect valuable health data. Meanwhile, providers are eagerly embracing mobile devices and telemedicine tools to better care for their patients and to increase operational and administrative efficiencies. Health systems are delving into big data to improve and better manage population health.

As these forces continue to reshape the possibilities of both medicine and healthcare delivery, 2014 will see exponential innovation. It is a prime environment for health systems, care providers, and entrepreneurs to either embrace and promote change together or be left behind.

Innovation as a core business competency
The passage of the Affordable Care Act has been a significant catalyst in the recent and dramatic evolution of the industry. Cuts to reimbursements have pressured health systems to find ways to cut costs while both broadening access to and improving the quality of care. At the same time, a strengthened emphasis on patient experience has encouraged providers to develop and refine ways to better serve patients.

Adapting to these new parameters requires creative and thoughtful change. It is crucial for healthcare systems and providers to shift from a paradigm that fights to hold on to the status quo to one that understands both the benefits and necessities of innovation. Embracing innovative approaches and entrepreneurial endeavors that improve care delivery, system infrastructure, and patient engagement in the near-term are now business strategies critical to the long-term success and viability of healthcare organizations. Today's decisions will determine which healthcare companies and systems will thrive tomorrow.

The change is inevitable. Entrepreneurs are weighing equally whether to work with the current healthcare system towards an improved state -- or to disrupt it. At this crucial juncture, healthcare leaders have to decide the role they will play in the evolution.

Healthcare innovation to watch for in 2014
Among the exponential innovation that will surface throughout 2014, four significant trends will emerge.

Health systems should view the quickly growing list of innovators and disruptors as opportunities for partnerships to supplement and advance their own efforts.

Demands on healthcare systems in 2014
To respond to the provisions of reform that require healthcare systems to reduce costs while improving quality of care, more healthcare providers will embrace innovation and technology in 2014. Because innovative tools give patients greater agency over their healthcare management and decisions, providers that offer novel care options will be more attractive to consumers.

The concept and execution of innovation in care will arm healthcare providers with the competitive edge needed to be relevant, successful, and sustainable. Companies that resist or outsource innovation will be disrupted by those willing to invest in and pursue innovation. In sum, the onset of exponential innovation is here. The time to embrace and lead it is now.

Download Healthcare IT in the Obamacare Era, the InformationWeek Healthcare digital issue on the impact of new laws and regulations. Modern technology created the opportunity to restructure the healthcare industry around accountable care organizations, but IT priorities are also being driven by the shift.