Health care as an industry has changed dramatically in the last decade. It has gone from patients being seen in standard doctor's office settings, to nurse practitioners and physician's assistants caring for them in retail settings.
There are new and existing walk-in clinics that have practices taking over retail spaces all over the nation. These health care clinics have changed the way we look, feel and use health care now.
The health care industry has been redefined by disruptive innovation. According to The innovator's prescription: a disruptive solution for health care, "…health care only seems to get more expensive and inaccessible…Only disruptive innovations have the potential to make health care affordable and accessible," (Christensen, Grossman, Hwang 2).
The walk-in clinics and urgent care centers that provide this care bring the old way of treating patients, in a new setting, with different health care professionals doing the work. These practices also include clinics inside of new and existing retail stores.
Disruptive innovation is a term that was coined by Clayton Christensen. According to his website, it is described as "a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors" (claytonchristensen.com). These innovations were always bound to come about, but Christensen proved how and why they work, and what they do for future markets.
The "characteristics of disruptive businesses, at least in their initial stages, can include lower gross margins, smaller target markets, and simpler products and services that may not appear as attractive as existing solutions when compared against traditional performance metrics," (Christensen, Key Concepts).
Before this disruption, the health care industry had a pretty standard way of doing things. Previously, the patient had to revolve their visit to the doctor's office around the doctor's schedule. If a patient wanted to get in, they had to schedule their appointment at a time that the doctor had an opening. They would also have to hope that they got an appointment on the day they were hoping to go in on.
The patient would, in some cases, have to take the day, or some time out of their day, off of their work. They would have to rearrange their schedule to see the doctor because of this scheduling conflict.
If there was an emergency medical situation, the patient would have to go to their nearest emergency room and wait to be seen by a doctor in that hospital. They would have to stand by, undoubtedly, in a long line, in the order in which they came in. They might also have the unfortunate situation of waiting longer because they are being taken in an order according to their pain level. The urgency of their emergency may also be a factor in when they are seen, as to how their situation is looked at, as compared to the other people in line, also waiting to see the doctor.
These are just some of the inconveniences that people have been living with. They never had another choice. Patients just had to suffer in silence. There are so many steps involved in the traditional way that medicine is practiced.
Besides being sick, there has always been work involved in acquiring health care. There is the registration process, which involves a lot of paperwork. Insurance is usually required. If a patient does not have medical insurance, they wind up paying hundreds, even thousands, out of pocket in emergency situations.
The disruptive innovation theory explains the process by which "complicated, expensive products and services are transformed into simple, affordable ones," (Christensen, Grossman, Hwang 3). The authors make this statement because they would like to get their point across that this is one of the reasons for the health care transformation. They use other industries as to prove their theories.
Some examples of a "disruptor" are personal computers, cell phones, community colleges, discount stores and medical clinics. "Disruptees" can be mainframe computers, landline phones, four-year colleges, full-service department stores, and regular doctor's offices. These elements of innovations in companies and products make life easier and less stressful while providing a fresh, new way of doing things.
For instance, mainframe computers and their punch card system did work well and were also profitable. Other industries like printing, photography, and others were and are, too. They continue, "The initial products and services were complicated and expensive," (Christensen, Grossman, Hwang 3).
A disruptive innovation comes about because the current products and services that have been working well and are being used and are already in place are, in another way, complicated. These products, for instance, the mainframe computers, require experts to operate them. Therefore an actually a seemingly simple task can be turned into a complicated one that involves many steps and many different people to accomplish. This was the norm for so long. People would never have noticed the difference if disruptive innovations had not been brought to their attention.
The authors use the example of mainframe computers that were first used in businesses. These computers cost millions of dollars to buy for the company's use. They also cost the company, even more, to operate and keep up. Not only did they have to pay all that money for the machine, but they also had to pay for fixes and updates.
These computers also needed to be run by trained professionals who know how to operate them, such as those currently e-monitoring patients. There was a whole process that had to be in place to use the mainframe computer. One employee had to gather the work to bring to the expert employee to carry out the task, then giving back the punched cards, for example, to the first employee.
According to The innovator's prescription: a disruptive solution for health care, "A disruptive innovation is not a breakthrough improvement," (Christensen, Grossman, Hwang 5). It is something that has been around, just not discovered. It is also a new spin on an old way of doing something. There is no wheel being reinvented here.
The disruptive innovation comes into an industry and instead of staying on the same path as the original design or way of doing things, "it brings to the market a product of service that is actually not as good as those that leading companies have been selling on their market."
One example that comes to mind is dollar stores. They carry a cheaper, nowhere near the quality of the original product that it is knocking off, but people buy it because it is inexpensive and affordable to them.
Stores like these are not the best looking, and don’t employ a lot of people to help with customer service needs. They are usually small in size, as well with little options as far as different brands of the generic products that they carry. The appeal is not for all of that for the consumer, their main concern and bottom line in their decision to spend their money at these businesses is the price of the products that are carried there.
Another example is cameras that come built-in on cellular phones. These cameras don't take pictures of as nice a quality as a professional camera does. They might not even have a flash setting. At first, though, they are not as complicated to use. These phone cameras do not require taking classes or any reading up on to learn how to use them.
Second, they are an all-in-one, which appeals to people more and more as time goes by. Because our society is a busy one, its people are constantly looking for ways to use technology to save time. A lot of this is being done on phones, as they are turning into more than just cameras. They are also being used to tell time, replacing the need to wear a watch. Cellular phones are used as phone books and calendars, as well.
Just using the technology itself becomes somewhat of an addiction. So convenience in health care was sure to follow, as will more and more industries, as people want things faster, and don't mind machines replacing humans to make service faster. Faster seems to be key. It will compromise quality, but complaints are not made or affecting this. This can be proven by the success of these disruptive innovations.
There are some clinics that even have a boutique-y feel. With magazines and books to read, water and other drinks stocked in a mini fridge, sleek, cold furniture and designed waiting rooms. Big, flat-screen televisions to entertain patients as they wait.
So while these disruptive innovations do not catch the interest of people at first, it eventually does to the general market of people who previously did not have access to these innovations.
Emergency room bills can be expensive, as can be doctor's bills. Going to these clinics and urgency care centers makes it more affordable, as well. People who just waited around and got worse – because they were avoiding going because they can't afford it and wound up suffering and then going anyways.
Some people wound up not going because it was the weekend, and their doctor was not available. Others avoid having to wait for days to get in to see the doctor because their doctors are all booked up. And more did not go at all, deciding to just wait and see if they would get any better.
With innovative disruptions, there is access for more people. This leads to the enriching of more lives and the making of less stressful ones. Consumers can be assured that even though they might not have a health situation right now, they or their family can be at ease. They can utilize this alternative health care option. It is comforting to know they have the choice every day, and possibly constant day and night access to a doctor's assistant or a nurse practitioner at any time they need it, close by.
Clayton Christensen brought together the concept of disruptive innovation. He created the "plane of competition" model to demonstrate his innovative disruption theory. The model, which has two sets of "L-shaped" examples to prove this theory. Each set has a vertical line representing the "different measure of performance", and a horizontal line that connects to it that represents "time".
On the top "L", there is a basic example with an arrow that gradually moves higher as it goes from the left-hand side to the right-hand side, representing the "pace of performance improvement that companies provide" and their "sustaining innovations, whether incremental or radical, [that]make good products better". This line goes up sharply to the top right-hand corner. There are four lines that go up gradually, and also represent demand and quality of usage as they increase. They are showing "performance improvement that customers can utilize."
On the second "L", which is shown on the bottom, there is a zoom-in rendering into the bold arrow of the representation in which "disruptive innovations made products simple and more affordable" over time, slowly increasing.
"A sustaining innovation targets demanding, high-end customers with better performance than what was previously available," the authors state in The Innovator's Solution: Creating and Sustaining Successful Growth. Also, "disruptive innovations, in contrast, don't attempt to bring better products to established customers in existing markets. Rather, they disrupt and redefine that trajectory by introducing products and services that are not as good as currently available products," (Christensen, Raynor 34)
There are concerns that patients may not go back to their primary care providers. "The Emergence of Retail-Based Clinics in the United States: Early Observations notes, "Some have raised the concern that retail clinics may disrupt primary care relationships. We found that three-fifths of patients did not report having a [primary care physician], so for these patients, there is no relationship to disrupt," (Laws, Scott). They are now starting to go to places that treat patients medically, called urgent care centers, walk-in clinics, and immediate care centers.
There are a limited number of reasons for visits, though. "The scope of care at retail clinics is focused on a small set of clinical complaints: just ten complaints account for more than 90 percent of all retail clinic visits," (Laws, Scott). This proves the need for these kinds of retail clinics to be placed in the healthcare marketplace.
Plus, primary care appointments can have patients waiting for days. Emergency departments are worse, having long waiting times. Consumers have a right to save time when it comes to their health. Time is of the essence.
Retail clinics provide mostly preventive services, such as immunizations. Because of this, most conditions that the patients are seen for in retail clinics most likely do not require the level of training of a physician. Their shots can be administered quickly by a nurse practitioner at the clinic.
These also clinics serve patients that cannot afford regular doctor's visits. It helps them to save money on health care that may have before been out of their reach. They can now seek treatment, and live happier and healthier, knowing that there are options like this out there for them.
These convenient clinics primarily treat simple illnesses, too. Even though they are not top-notch, they are a safe alternative to a doctor's office or an emergency room because of this. Patients that do not need the level of care that they would under an extenuating circumstance can do without all of the frills of the usual physician visit.
Patients are told the cost up front at walk-in clinics and urgent care centers. They then can decide right there if they would like to proceed to see a nurse practitioner or a doctor's assistant professional. If they do decide that the cost of these services that they need is too high, the patient can choose not to use the health service. They can also opt to go to another clinic nearby that is more affordable. If it is a non-emergency, their situation might even be able to be put off for a couple of more days.
There is no element of surprise in getting a gigantic hospital bill in a retail clinic situation. The patients pay their costs up front so that the amount is known and is taken care of immediately. Some other patients can even call ahead of going to the clinic to get an idea of the costs involved.
Some people do not even have health insurance to begin with. For some, health care is not a necessity because they cannot afford insurance. They may not have the extra money to spend on monthly insurance premiums, so they would have to pay out of pocket, which they cannot afford to do either.
There are some consumers who would choose to get help from the government if they can because they would like to make their health a priority. They may not be able to do so because they do not qualify for those programs. These people would benefit from a retail clinic because they can pay out of pocket, as they go, for their health care needs.
Another concern is that patients will not be treated as well as they should be. Some reasons would be that these patients are not seeing licensed doctors. They are seeing professional that are otherwise licensed in nursing and have other degrees, though.
Some doctors would reason that because these professionals do not have the amount of schooling that they may have, their level of care for the patients would not be up to the standards they believe they should be. They may also argue that these nurse practitioners and doctor's assistants do not have as much on-the-job training as the doctors have had. Some of this is required with the extra schooling that the lower-level health care providers were not required to do to receive their degrees.
Another argument is that patients could be misdiagnosed. This concern would arise in the event that someone who sees a patient has not worked in the medical field long enough to have the hands-on experience as someone who would notice subtle differences between one type of illness from another. They might not recognize the slight similarities of two different kinds of illnesses that are seemingly the same.
Additionally, they may have to go to see a primary care doctor for a follow-up appointment anyway. Doctors could argue that the patient, in this instance, winds up with the wrong treatment the first time. This would possibly take up time in the instance that the patient was trying to save time to begin with by going to the clinic. They would have to be seen again.
This would mean that the patient would have to make an appointment to see a second doctor or nurse. This situation could have been avoided by going to the primary care physician's office to begin with. It is worth trying the clinic, though if there is a situation where the patient simply cannot wait to see a health care professional. They would also wind up paying twice, another thing that the patient would be trying to avoid.
The health care example follows Christiansen's model in some ways, but not in others. It follows the model in the way that the clinic health care market is booming, so it is moving upwards, steadily, as the model shows with the general market. This is the way that an innovative disruptor should work.
It does not fit the mold completely, though, because walk-in health care clinics seem to be growing at a faster rate than the model shows an innovative disruption should. They are grabbing retail space all over the nation and opening up multiple locations in some cities. From this viewpoint, it actually works to prove Christensen was more than right about these technologies.
Disruptive innovations, in this respect, are actually taking over more of the market than they may have even planned for. For these businesses, they may have actually underestimated the power of what their products and services would help them accomplish. This is because of the profound impact that they are having and will continue to have on their consumers, old and new.
The health clinic disruptive innovation theory does follow Christensen's model due to the fact that this market will not completely wipe out the standard health care market that has been in place long before clinics. This form of health care is going to take over a bigger share of the market, though, at this rate of growth. This would make it more likely to strays a little bit away from the model. It will not eliminate the former model of traditional health care, but it will take away a lot of business from it.
Consumers that have more money to spend on insurance and specialized doctors are sure to try these clinics. There has to become a point where they are in a rush, feeling unwell, and are willing to give the more "high-end" urgency clinics a try. They also have anonymity, so their doctor would not necessarily have to know that they strayed and tried something new. They could keep those records separated if they wanted.
The level of care and service would most likely improve over time, so it would take away from the general market in that respect, as well. The technology will improve over time, and the equipment used in these facilities may get cheaper because of this. Also, if corporations are buying large quantities of health care equipment for their health clinics, they would be able to negotiate a lower rate for that equipment.
It can be assumed that although disruptive technology does make an impact on the market and might take over a large part of the market share over time, it does not conquer that market completely.
There will still always be a need for higher quality care, or products, in different industries. There will also still be people who have more money to spend on higher costing health care, and therefore still use their access to it, not deciding to use the alternative.
The existing health care market was in need of a disruption because some new concept needed to be brought in so that health care would become accessible to more people There was a need for these clinics to emerge in the health care market. Not enough people were taking care of their health.
According to "Will Disruptive Innovations Cure Health Care?", "The U.S. health care industry is in crisis," (Bohmer, Christensen, Kenagy 2). The authors come to this conclusion because, "Health care delivery is convoluted, expensive, and often deeply dissatisfying to consumers," (2). Even when things seem to be working out fine, there is always room for improvement.
With that aspect in mind, it would be a technology that follows how society is moving and starts moving with it, as opposed to staying in an industry that does not make improvements to help more people. This is what the health care industry stands for. Doctors, nurses and nurse practitioners can do their job better in helping the public, by working around the public's schedule.
There wound up being a strong need for a new way of providing health care to everyday hard-working people. They are the majority when it comes to the economy and how and where the money is spent. They affect the different areas of different all kinds of different markets, including healthcare, the most.
Retail clinics provide medical treatments to people. They are usually located in retail stores or pharmacies. There is typically a nurse practitioner on-site, to see patients and write them prescriptions for their diagnose illnesses.
Convenient care centers are open after regular business hours and on weekends. Some 24-hour urgent care centers have doctors that not only treat illnesses, but also perform x-rays, lab tests, help patients that have injuries and do physicals, as well. These centers accept multiple insurance carriers and also self-pay. They provide consumers with up-front estimates on the cost of what their services will be.
This innovation is also disruptive because consumers now have the option of going to get their health needs met in a quick and easy fashion. They don't have to travel far to reach some of these clinics, as they are opening rapidly in many locations. They can see any physician by simply traveling down the street from their home.
There are many reasons that prospective patients visit these walk-in clinics. Some of the most common reasons that they go to them, though, are for infections. Illnesses that could be treated with antibiotics, like sinus infections, are commonly seen by the nurse practitioners that work in these clinics. In these medical situations, if a patient cannot get in to see their doctor, they go to these clinics instead.
Some people go for different convenience reasons. These people do not have time to make it to their primary care physicians because their work schedule does not permit them to make room for medical issues. Some people are even too busy to take the time away from their job to just make the phone call to set an appointment. It requires sitting on the phone and having an initial conversation about what is wrong health-wise.
Another issue in regards to setting up a doctor's appointment is that there is always the extreme likelihood to be put on hold. Also, when talking to the administrative person on the other line, this person has to look through the doctor's schedule, and see where they can fit the person in, and take down information that will have to be given to them again at the time of the actual visit. Some people do not even consider this to be an option for them, because they do not have the extra time.
Because many other businesses have followed Christensen's model, there has been a domino effect in which other businesses do not have a choice, but to follow. This would include banks, which have extended their hours. The workday is no longer just eight hours like it used to be.
These new, extended schedules, it would only make sense that there needs to be a way to accommodate all of these people that work after the hours of their primary care provider. Another point is that some primary care doctors are now more likely to open their offices for a little while on Saturdays now. This may be due to the increasing competition of the walk-in clinics.
There is also the costs that are involved. Although there are some people that could afford to go to a primary care physician, they might want to take advantage of the lower rate offered at a health care clinic, and go there to pay less. When these clinics first started opening, some consumers may have been hesitant to go. But after their first visit and experience with the staff and doctors or nurses, they may get hooked and will become more likely to go back.
Patients also appreciate the quick service of these doctors. They do not need to wait to be seen anywhere near the length of time it takes to see their primary care doctor in a regular physician's office.
The downside to these clinics, though, is there are some ways in which their services only go so far with helping their patients. Some health issues and concerns are going to be out of their scope of practice. They may have to let the patients know that they cannot be treated.
If a patient's problem cannot be solved by the clinic physician, that patient will wind up being referred back to their existing primary care physician, in which case they actually did the opposite of what they sought out to do, which saved time. They may have to make that traditional doctor's appointment after all.
If the situation is too dire, they might be directed to go to the emergency room. If the patient cannot be seen, because they would need to be looked over by a specialist, they might not be saving time after all. This would be a downside to this innovative disruption. Even though these facilities are convenient, they do not cover all of the services that a traditional doctor's office or emergency room can offer.
Another negative is that the clinics will not have all of the patient's records. This might lead to an issue if they have any health issues that might not respond well with a treatment the nurse practitioner or doctor gives them. A patient would only face this situation, though if they fail to inform the health care provider of this fact.
Walgreens' responses to this revolutionary new way of providing health care by getting involved, as they are a major provider of health care prescriptions and medical assistant products. It made a lot of sense for them to come into this market, because they already have such a big share of the pharmacy market, providing their own clinic, which they call Take Care Clinic, they gain more business.
By bringing patients into their store to see a nurse practitioner, they gain the advantage of also being able to provide other conveniences and build on their existing sales. CVS/pharmacy is another big player in this growing health care area. To stay on track with current health care trends, these companies are just some of many that are dominating this market.
The factors that led to responses like Walgreens and CVS/pharmacy are those of convenience, as well. They are in the industry of providing convenience. Their pharmacies even provide drive-thru services, which make it that much easier and quicker for consumers to pick up their medications without even having to find a parking space and get out of their car.
Money is another force. Their profits go up, and they have the opportunity for repeat business by local residents. When people feel ill, they do not feel like leaving their homes, but to receive medical care, they would rather make their lives easier and less stressful by going to see a physician that is close by their home.
Patients receive the same level of care as they would expect at their primary care doctor's office. All of the usual services are performed: they get their heart rate checked, their temperature taken and their blood pressure measured, for example. They are still looked over the same way, and asked the same questions as in a regular doctor's office, to assess their current health situation.
There are also mobile applications for these health care facilities, especially Walgreen's Take Care Clinic and CVS/pharmacy's MinuteClinic. Besides offering a convenience to their customers and patients, these applications remind them of things they need to pick up at these stores.
Retailers also use text alerts for specials and to tell customers when their prescriptions are ready, relieving them of the hassle of waiting around in the store. Things are made easier, and the consumer can get more done now.
Jobs at retail clinics may be more obtainable to future health care prospects. These positions do require such a high degree (which also affects the disruptive innovation of for-profit schools. A position that may have seemed out of their reach in the past is now more of a reality. There is also the benefit of becoming employed by a major corporation that owns most of the market share in the health care field.
This helps with employers, as well. Retail clinics, as well as walk-in centers, employ people at a much lower rate. Their employees are happy in their positions, because they work different hours, giving them the schedule flexibility that they might want. They also have an easier time getting job placement and have more choice of where they would like to work.
These factors lead to a decrease in employee turnover. With more employees having a say in their position, this makes them happier to go to and to be at work. They are happy with the service that they are providing, and the patient is happy with the service they are receiving. It is a win-win situation for everyone involved.
"It has been well-documented that America’s unparalleled health care spending has not led to better health outcomes than most other nations," according to "The Future of Innovation" (CNBC.com). With this in mind, it is no wonder that more and more people will be willing to try out urgent care centers and retail clinics.
If they are disappointed with the way health care is currently, and if other options are given to them, they will obviously take those other options, especially if they are more convenient and less expensive.
Sometimes companies in various industries, like health care, are hesitant to change. They are like this because they are thinking about their bottom line more than they are about the consumer. "This resistance to low-cost alternatives is understandable, but it’s not in the best interests of the industry or of the patients it serves," according to "Will Disruptive Innovations Cure Health Care?" (Bohmer, Christensen, Kenagy).
When it comes to business, it does not serve the company well to change in the way of simplifying their way of doing things and accommodating the consumer. They have to keep the money coming in and keep bringing in profits. There are various people involved in corporations that keep businesses resistant to change.
Companies have investors to please, too. They have to pay their top people well, so they stay with that company and continue to help make the business profitable. They also have to worry about keeping the business running at a certain pace to keep up with the competition.
Businesses may be resistant to change when it comes to making things easier and more affordable for the consumer. They might want to introduce change, though, when it comes to creating a bigger and more complex product that would make them more profitable.
So it would pay to create innovative products and services for the consumer, but when it has the best interests of the business in mind. This is why big businesses might not worry about smaller, less expensive alternatives to their products and services, coming on to the market.
These alternative services do not take from their business. There are different levels of consumers who are being serviced. The consumers who pay a lot expect a higher quality of service. They expect a better quality product as well. This is something they are already used to, so any downgrade would make them unhappy.
When a consumer is accustomed to a certain standard, they would like to see that improved upon. It would not be in a company's best interest to let these consumers down, as they are loyal to them. Big businesses would not like to see their consumers going to the competition.
Disruptive innovations would not affect the competition in that respect, because they are, in some way, in different categories. This is despite the fact that they may be serving the same market.
They are just doing that with a different set of consumers and in a different way. They both please their core audience. These people just expect different ways of services and products, according to what they have been accustomed to.
If there is a deviation from this model, a possible innovative technology company may not succeed. "Any company that doesn't have a systematic way of targeting its development resources toward customers' needs…will fail," it is said in The Innovator's Dilemma: The Revolutionary Book that Will Change the Way You Do Business (Christensen 97).
In 2008, Health Affairs reported that "clinic operators have evolved from a dispersed group of privately financed concerns to a concentrated, largely corporate-owned group," in its article, "The Emergence Of Retail-Based Clinics In The United States: Early Observations" (Laws, Scott). This shows how they have grown in their market and will continue to become the market leader in health care.
Physicians remained concerned, though. They worry about a low quality of care that the patients may be receiving. There is also concern that there might not be follow up treatment, as well. If a patient takes the nurse practitioner's advice and still does not get well, they may not be well for a while if they are not seen again.
Also, if they do not properly finish their course of medication treatment, their illness may return. It might even come back to be worse than it was in the first place. If there is no alternative tried, or if the treatment is not restarted, that patient could wind up having to go to a hospital in an emergency situation.
This is a better option for patients, though, because of its accessibility to more patients, young and old, which has helped with its success as well.
There is not a lot of competition in the beginning. According to Christensen, "Because…lower tiers of the market offer lower gross margins, they are unattractive to other firms moving upward in the market, creating space at the bottom of the market for new disruptive competitors to emerge," (Christensen, Key Concepts). With the growth of a new market, big corporations may come into play.
This is the case with CVS/pharmacy's MinuteClinics and Walgreens' Take Care Clinics. These stores opened health care "quick" clinics within their stores to gain their share of this market. They are not only a convenience in the way that they provide medical access to their customers.
These retail stores are servicing their customers in a way that they are an all and one service. Consumers can go to see a nurse practitioner, grab their medication and pick up their groceries, all on the go.
These major retail stores work with the disruptive innovation model because they are so big. If there was not a big enough need for a new way to practice health care, with such a wide audience, this model would never have worked for them.
Being the size that they are, though, there had to be extensive research involved in the decision to implement these clinics into their new and existing stores. Christensen has said that the size of the organization has to match the size of the market. In this respect, it does.
These big corporations are also not interested in the beginning because the disruptive innovation comes about in a small market that appears to be unattractive to investors, according to Christensen's theory. It creates a new market. Christensen says that these innovations are a "positive force".
They are also a reasonable option for their current customers, and possible some new customers, because of their convenient locations. They may gain a greater piece of the market share than they already have, being pharmacy giants. Patients may go to them over independent urgency care clinics because of their idea locations which are always close to home.
These two retailers are also a "disruption" within a "disruption" for a number of other reasons that apply to the model of disruptive innovations. Walgreens and CVS/pharmacy are smaller stores with smaller parking lots. This means less walking and easier access for customers, especially the handicapped.
They are both more convenient alternatives to major grocery stores. These stores provide on the go foods and also carry staples like milk. They offer products that customers used to have to go to department stores to purchase, like makeup. Consumers can buy these beauty products at a much lower price point, and get a very similar product, cheaper.
They also offer items that used to be staples only found in hardware stores. Customer home improvement needs can be met at Walgreens and CVS/pharmacy's many locations. These stores basically replace the need to go to the doctor's office, and a separate pharmacy. They also are an all-in-one store if kept in mind all of the other services they provide.
CVS/pharmacy and Walgreens receive double the business if the person stays and gets their prescription, which is most likely what they will do. They are only steps away from where the nurse practitioner will be seeing them. They just need to register in a quick process, sometimes using a touch-screen computer, and they are seen quickly.
A step away from the nurse practitioner is the pharmacy. After the nurse has just seen the patient, they can have their prescription, if one is needed, electronically sent straight to the pharmacy, in the same store, for them.
They also have to option to have their prescription printed out, so the patient can take it to another pharmacy if they chose that option. At these convenient clinic locations, the nurse practitioners, physician's assistants and pharmacists work together to provide quick, convenient, affordable care to people. The nurse can also print out a list of primary care physicians if the patient does not have one but is interest in seeing one.
If their condition or symptoms does not improve, though, they may still have to follow up with a "regular" doctor. Because of this, the market for primary care doctors is not completely eliminated. A higher level of expertise may be needed in a follow-up visit with another professional.
With urgent care being used instead of the emergency room, patients get medical access without suffering for hours on end in the emergency waiting room. But, in a "rushed" situation, although the nurse or physician may be able to spend more time with the patient, the level of care might be lacking because they are being cared from by a person who has not had the time, experience and education level as a doctor in the hospital or in a private practice.
Although there are pros and cons, disruptive innovations do not completely wipe out the competition. Hospitals do not appear to be going away. This is where people go when they don't want to travel far, don't want to wait, don't have a medical issue that needs an in-depth look. Also, hospitals provide long-term care that the retail and urgency care clinics cannot.
Consumers want a quick solution to their problem. Even signing in is quick. Usually on a computer. They don't have to pay office staff, computers are the receptionist and nurse is doctor, and follow up and billing. They don't have to park in a huge lot, and there is easy access and less time parking, walking.
If disruptive innovations do get rid of the competition, this would not be an example of that. The health care industry did need to make some urgent, but not life-threatening situations more accessible to patients. It is still advisable to see their primary care doctor as a follow up if they do not feel any better.
Another point, though, is that in a private practice, doctors seem to over-book their patients. This can be frustrating to wait in a lobby, then a waiting room, and seeing a nurse, and finally seeing a doctor. It is a process. With the doctor overbooked, they can't spend a lot of time with patients anyways, so it does not make a difference in the lower level of quality of service when looked at this way.
Clinics may not have an experienced and highly educated doctor on staff all the time at their locations, but patients do not seem to mind. They are more concerned with getting in and out. Without all of the staff, the visit is much quicker.
With innovative technologies, there is a new way of living. "An innovation that is disruptive allows a whole new population of consumers at the bottom of a market access to a product or service that was historically only accessible to consumers with a lot of money or a lot of skill," (Christensen, Key Concepts). This provides an easier living for everyday people and consumers.
Also, Christensen's theory explains the occurrence, when an innovation "transforms an existing market or sector by introducing simplicity, convenience, accessibility, and affordability where complication and high cost are the status quo," (Christensen, Key Concepts). These transformations are seen every day, as new health care clinics are popping up in cities all over the U.S.
The first consumers to take advantage of disruptive innovations, like those seen in the health care industry, seem to be younger people. They are also the ones that are more likely to use convenient health care clinics. The younger generation was born into a world of convenience.
Another factor with the younger generation is that they cannot afford as much. They may not have health insurance. Some young people are starting off careers in entry-level positions. They will not be making the amount of money needed to provide for both health insurance premium costs (which the health insurance may not be provided by their employer), and they would not be able to cover the costs of preventative and emergency health care with their small salaries.
With knowledge and information at everyone's fingertips, services will become more accessible every day, though. Costs will become more and more transparent. This is fairer to the consumer and health care patient.
To go along with the convenience of this market, as well, these companies are utilizing websites to inform customers about their services and locations that they provide to the public. It is easy to access the health care clinic information they need to decide if they want to stop for a visit, in the first place.
Websites also offer free advice. Health tips and preventative care articles are useful for consumers. It is better that a patient is informed about their health, especially in this kind of alternative health care setting, where they are in and out of their appointment so quickly, they may not be able to ask the questions that they need to to get the most out their visit, and the way that they need to care for themselves afterward.
Disruptive technologies are definitely a positive addition to businesses in different markets. They do have a big responsibility to their consumer, though. Although not much needs to be expected of them because of the position they are in, they should have a certain standard of care set in place.
Within the health care clinic setting, there should be a professional that manages the clinic at all times, in case an emergency situation does occur. There should also be steps taken to ensure the privacy of the patients. These facilities will see a lot of new faces, and most likely the same ones only once in a while.
They are different from doctor's offices because they might not get as much repeat business as often as typical health care providers do. The clinic employees will have a lot more patient records to keep, which makes their patients information at more of a risk. Identification should be provided in an instance where a patient asks for records. The computers should also be secure with password protection and private employee access.
The administrative staff should also be trained on how to deal with difficult patients and challenging situations. Because this is not a typical doctor's office setting, the staff may be new to the health care field and may not have medical knowledge because they are in a quick clinic setting, signing patients in and out. They may just be there to take payment and insurance information.
The health care clinics should also have a cleaning standard in place. The facility should be cleaned professionally and picked up by staff as needed. The standard sterilization of equipment should be used, as well as safely disposing of contaminated objects.
With these rules in place, these clinics will run smoothly and make the experience more pleasant for the consumer. This will help their business to grow, and keep the consumer coming back. It will help them to climb towards and achieve a position at the top of the health care industry.
Consumers are running their everyday errands and appointments differently. There is no longer a concern about making an appointment for and going to the doctor. If the need comes up, it can be done at the last minute. Going to see a health care professional is something that can be squeezed into their daily schedule.
They do not have to schedule their day around a doctor's appointment. Also, they do not have to miss working at their place of employment because of it. The consumer now can focus on the other aspects of their busy lives, and have one less thing to worry about. This is because they are the main focus when it comes to the disruptive innovation of health care clinics and urgent care centers.
This innovation will only get better and easier for the consumer and patient. They were always meant to be the center of focus when it came to their health, but profits and salaries got in the ways of everyday people gaining access to the health care they rightfully need.
Works Cited
Christensen, Clayton M., Richard Bohmer, and John Kenagy. "Will Disruptive Innovations Cure Health Care?". Harvard Business Review 1 Sept. 2001: 2. Print.
Christensen, Clayton M. The innovator's dilemma: the revolutionary book that will change the way you do business. New York: HarperCollins, 2003. Print.
Christensen, Clayton M., and Michael E. Raynor. The innovator's solution: creating and sustaining successful growth. Boston, Mass.: Harvard Business School Press, 2003. Print.
Christensen, Clayton M., Jerome H. Grossman, and Jason Hwang. The innovator's prescription: a disruptive solution for health care. New York: McGraw-Hill, 2009. Print.
"Clayton Christensen." Clayton Christensen. RainCastle Communications, n.d. Web. 5 Nov. 2013. <http://www.claytonchristensen.com/key-concepts/#sthash.J1UEwmBg.dpuf">.
Hwang, Jason. "The Future of Innovation: A CNBC.com. Special Report Top News & Analysis." CNBC.com. N.p., 31 Oct. 2011. Web. 5 Nov. 2013. <http://www.cnbc.com/id/44905039/>.
Laws, M., and M. K. Scott. "The Emergence Of Retail-Based Clinics In The United States: Early Observations." Health Affairs 27.5 (2008): 1293-1298. Print.
Mehrotra, A., M. C. Wang, J. R. Lave, J. L. Adams, and E. A. McGlynn. "Retail Clinics, Primary Care Physicians, And Emergency Departments: A Comparison Of Patients' Visits." Health Affairs 27.5 (2008): 1272-1282. Print.
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