Maintaining

Competitive
Acute
Event

Prevention

Advantage as
Screening Diagnosis Monitoring

Treatment
Plus

Healthcare
Chronic
Disease

Changes
Ogan Gurel, MD MPhil
Aesis Research Group, LLC
gurel@aesisgroup.com

American Data Network

12th Annual Leadership Retreat
Lodge of Four Seasons, Lake Ozark, MO
Saturday, April 30th, 2005
 Overview

 Competitive Advantage
 Change
 The Future of Healthcare
 Maintaining Competitive
Advantage in the Face of Change
 Overview

 Competitive Advantage
 Change
 The Future of Healthcare
 Maintaining Competitive
Advantage in the Face of Change
 Five forces of competition
define strategic options

Source: Porter, Michael, On Competition, 1995

 Competitive advantage
accrues from two factors
 Cost Advantage

 Differentiation Advantage
Competitive Strategy
 Overview

 Competitive Advantage
 Change
 The Future of Healthcare
 Maintaining Competitive
Advantage in the Face of Change
 Change: Incremental or
Disruptive?

Source: Christensen, Clayton et al, Seeing What’s Next, 2004

 Change shifts the
competitive forces

Source: Christensen, Clayton et al, Seeing What’s Next, 2004

 Cost pressures shift
patient management

Source: Christensen, Clayton et al, Seeing What’s Next, 2004

 Overview

 Competitive Advantage
 Change
 The Future of Healthcare
 Maintaining Competitive
Advantage in the Face of Change
The hospital as center of
care

Acute
Event

Diagnosis Treatment

Chronic
Disease
 Care is now decentralized
and fragmented
Acute
Event

Prevention

Screening Diagnosis Monitoring

Treatment
Plus

Chronic
Disease
The future will demand more
integration and coordination

Acute Prevention
Event

Sub-
Screening Diagnosis
Diagnosis

Treatment
Monitoring
Plus
Chronic
Disease
 Overview

 Competitive Advantage
 Change
 The Future of Healthcare
 Maintaining Competitive
Advantage in the Face of
Change
 Competitive forces are
changing

Source: Porter, Michael, On Competition, 1995

 Competitive strategy will require
both quality and cost measures
 1970s – 1980s Quality

 1990s Cost

 2000s Cost & Quality

Key Implications:
1. Quality measures must be measured
2. Quality measures that equate to cost reduction will dominate
3. Organizations that leverage data-driven healthcare will succeed
4. Relatively few organizations may meet these challenges
5. Consolidation will happen
 A question:
 Given the rapid pace of medical technologies, is
evidence-based medicine possible?

December 4, 2003 April 14, 2004

“CT virtual colonoscopy is an accurate screening
method [and] compares favorably with optical
colonoscopy in terms of the detection of clinically
relevant lesions.”
Study Period: 5/2002–6/2003
“Computed tomographic colonography by these
methods is not yet ready for widespread clinical
application. Techniques and training need to be
improved.”
Study Period: 4/2000–10/2001

 If the answer is no: Medicine will remain an art

as well as a science
 Therefore:
 Truly data-driven medicine requires a relatively
static system

 Technology and care processes change too

rapidly for this to be possible

 Organizations that are flexible, adaptive and

data-driven will be successful

 Continuously changing organizations put a

premium on leadership
Æsis Research Group
Ogan Gurel, MD MPhil
Providing forward-looking information, intelligence and
research services to healthcare investment decision-makers
Facilitating hospital-clinician relationships to help implement
and move forward strategic, operational and facilities initiatives

11 S. LaSalle Street, 5th Floor, Chicago, IL 60603

T (312) 423-2764 | F (773) 409-5897 | M (312) 543-9019

gurel@aesisgroup.com