Having worked in the healthcare industry for over 20 years, I’ve seen firsthand how forward-thinking organizations drive innovation, whether by fostering internal teams to create new ideas, or acquiring companies in their space that are shaping new healthcare paradigms. These teams had one thing in common, from the onset, they all agreed on what their definition of innovation would be. But in order for a healthcare organization to prepare themselves and choosing one of the three types of innovations that would best suit their objectives, it is imperative to understand why we need innovation in healthcare, it first needs to clarify what it means. According to the World Health Organization (Leighann Kimble and M. Rashad Massoud):

“‘health innovation’ improves the efficiency, effectiveness, quality, sustainability, safety, and/or affordability of healthcare. This definition includes ‘new or improved’ health policies, practices, systems, products and technologies, services, and delivery methods that result in improved healthcare.”

It is clear that there are many challenges in the healthcare industry and to overcome these obstacles, fresh, innovative approaches are needed.  This basically implies the enactment of new or significantly improved products, services, or processes.

Though there have been many innovative advances in medical procedures and technologies, one of the main areas of concern are the healthcare delivery system. It needs streamlined organizational and automation procedures. And, in order to resolve this, it is important to take a look at why it is so difficult.

Recognizing Where the Problem Lies

When looking at the difficulty of employing innovative ideas, there are three different kinds of innovation that can make health care better:

1) Consumer-focused: Focusing on the way consumers use health care.

2) Technology-based: Developing new products and treatments.

3) Business model: Focus on integrating different healthcare organizations.

Considering these different fields of where innovation is needed, it is crucial to look at the forces which impact these healthcare innovations. It is only by identifying these, that we can better understand why innovation is needed.

1 – Players

There are different investors involved in the healthcare industry – all with some degree of power to influence public policy. The problem arises when they do not see eye-to-eye and refuse to give way to a policy which is for the greater good of the industry.

2 – Funding

The issue of funding has two parts to it: funding the development, and who will pay for the service.

3 – Public policy

Within any institution or industry, there is always policy to adhere to. Therefore, for the successful implementation of innovation, it is important to understand how regulation might affect it.

4 – Technology

Medical technology is evolving all the time. And, if medical institutions want to continue moving forward it is vitally important to learn how and when to invest in its evolvement.

5 – Customers

More and more people seek help and information for medical conditions, outside the realm of medical professionals. Disregarding medical advice only proves that new innovative ways of connecting with those patients are needed.

6 – Accountability

Because patients are more and more empowered they demand that innovators reveal cost-effectiveness in their procedures. The problem with this, however, is that these organizations are often more focused on the process than on the output.

So, the question of why we need innovation in healthcare is answered when we recognize these problems that arise, and when these forces are turned to our advantage. Knowing the problem gives us the ability to come up with innovative ideas on how to be more efficient and sustainable in the healthcare industry.

Share your insights. How do you drive innovation in your organization? What approach you felt worked? What advice would you share with other healthcare leaders?