Abstract
Healthcare organizations face unknown changes in the coming decades. How healthcare reform unfolds will depend on a unique collaboration between government and industry. On one hand, healthcare is a social good and benefits from a strong government hand in regulation. The Patient Protection and Affordable Care Act (PPACA) starts to address healthcare’s problems, but is only one step of a series of coming changes. On the other hand, healthcare also faces the issues typical of any free market industry, including zero-sum competition, focus on episodes rather than the full cycle of care, comingled care models, and so on. This article summarizes two free-market frameworks for healthcare reform by Christensen and Porter. These provide a straw man with which to consider the direction and extent of industry change beyond PPACA. This comparison suggests healthcare will need additional business model innovation and new forms of competitive structure. Building on this analysis, we suggest seven dimensions along which healthcare leaders could prepare their organizations now in order to thrive through and beyond PPACA. These provide a conceptual foundation for further scholarly and practitioner research into the roles healthcare management will play in industry reform.
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