drivers of health

You are what you treat: Transforming the health care business model so companies—and people—thrive

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May 24, 2022
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The vast majority of today’s health care organizations can’t successfully and sustainably address “drivers of health,” also known as social determinants of health, to improve people’s lives. This isn’t because leaders are incapable or unwilling. Most organizations simply don’t have the business models required to make the desired impact. Traditional business models are set up to succeed in the fee-for-service, “sick care” business, not the value-based business of improving health by addressing the root causes of disease. As a result, health care organizations need a fresh start. They need new business models to address drivers of health and create better lives for individuals and communities.

In this paper, we provide a data-driven and theory-driven analysis for why this is the case, and guidance leaders can follow to design or redesign their business models. By transforming value propositions, resources, processes, and profit formulas, health care organizations can embark on a path to thrive in the future.

Ann Somers Hogg is a senior research fellow at the Christensen Institute. She focuses on business model innovation and disruption in health care, including how to transform a sick care system to one that values and incentivizes total health.