“The market” was appalled when Warren Buffett, Jamie Dimon and Jeff Bezos teamed up to disrupt healthcare three years ago to launch Haven in response to that news. Health stocks A sizable $ 4 trillion chunk of the US healthcare economy lost billions in value overnight. Among others, CVS Health, Walmart, Cardinal Health and Express Scripts were affected.
A couple of details via Haven came about after the new company was announced to the public in January 2018. To be technically precise, the Haven brand name didn’t appear until about a year later, in March 2019; Before that, the company was initially named with the initials of its partners: ABC or ABJ.
Haven held his cards close to his chest, saying only that it “will explore a wide range of healthcare solutions and try new ways to make primary care easier to access, easier to understand and use insurance, and to make prescription drugs cheaper.”
Having three companies come together to say they were fed up with the status quo is a big deal, argued Matthew Holt, a health executive at private equity firm New Mountain Capital. “These executives influence the market by simply standing up and talking about inefficiencies and costs,” he said in an interview With CNBC.
At JP Morgan’s annual health conference in January 2018, Dimon hosted a private dinner for about 25 top pharmaceutical company executives – the simple goal – and advocated lower drug prices. He told his dinner guests: “We are not satisfied with the health costs and want to help.”
The complex reality of the current chaos of collapse, including the chaos of Haven, is that we must all re-examine some of our favorite buzzwords. The rules that determine and limit ways of thinking no longer work for multiple paradigm shifts. The unmet need is a new science of synthesis, a new conceptual framework to solve market fragmentation.
“We learned a lot about the difficulty of changing in an industry that accounts for 17% of GDP,” Buffett said at the Berkshire Hathaway annual general meeting earlier this month, speaking about the failure of Haven. “We fought a tapeworm in the American economy and the tapeworm won,” he added, using his favorite healthcare metaphor.
But the metaphors we use are like a map. They can lead us or lead us astray. It is entirely possible that we will get stuck trying to solve the wrong problem.
“Warren Buffett is hardly the only company executive who raises his hands over health care cost control. Even the largest and most powerful corporations in the country don’t really have the power to crack down on the health system. ” Larry Levit, Executive Vice President of Health Policy at the Kaiser Family Foundation, said Yahoo Finance.
If we have learned anything in 2020, it should be that public health is not separate from economic health. “Healthcare” is the economy, a metarket around which around $ 142 trillion of global GDP flows and connects.
The “system value” is decisive. That’s why China is Moving away from gross domestic product (GDP) as a measure of strategic success, instead adopting the concept of “Gross Ecosystem Product” (GEP), the total value of the ultimate ecosystem goods and services provided for human well-being, as the new standard. The organizing idea is not “costs”, but the “production of health” as a new narrative.
In other words, the transformative task of today’s healthcare leaders is to creatively explore and conceptualize a new context for results, quickly assemble the intellectual point of view, and then the new “infrastructure for results” – the nervous system – to own the space . The only story that matters is the one where a new system was developed to create better health.
Results from the new context, not inputs from niche effects, become the axis of competition. The advantage comes from how common information sources are aggregated and analyzed. You either know what others don’t, or you better interpret what others are doing. The transition is from data processing to context processing.
We’re failing to reshape the American way of healthcare because the story of “cost” and “price” continues feedback loops that haven’t changed in more than 50 years.
When it comes to “disrupting” the status quo, overcoming the current state and jumping into a new orbit for action and imagination, we need different words to think different thoughts. To quote Martin Amis, we struggle with clichés, not only with clichés of the pen, but also with clichés of the mind.
The unmet need is a modern strategy positioned with systems thinking.
That is, “The strategy that repairs the health system” has little to do with the “repair” of the health system; it has more to do with new market narratives with outcomes than final state vision.
“Cost” is not the problem. The “production of health” is.